Luckily for Perth residents, there may be a positive swing on the horizon within the real estate, property and housing market in 2019. Whilst there is a gradual rate of decline within the market, it is important to note that it is slowing – and as such, property in some areas of Perth is at its most affordable in more than a decade. The economy, and in particular the mining sector, are set to reflect this market improvement
The outlook for WA’s economy is looking increasingly positive in 2019. With job vacancies at their highest point since 2013, growth in the state’s population and an improvement in the mining sector, it is shaping up to be a relatively steady year both economically and within the real estate market.
Perth’s median home price is now the cheapest of any capital city in Australia, and in turn, WA is currently the most affordable state in Australia to reside in. It is expected that due to an extremely low house price to income ratio, a recovering rental market, soaring rent prices and continuously lowering median house prices across the state, more and more young people will be nudged into buying properties.
Sales activity in Perth has increased by 6.4% over the past year (according to data from REIWA), indicating a significant rise in consumer confidence and overall auction activity. South Fremantle, Bentley, Canning Vale and Dianella recorded the highest sales volume in the past quarter.
As many Australian capital cities are unfortunately at risk of potential unit oversupply, there are a number of tighter lending standards in place within Perth at present. Whilst WA’s falling house prices may appear extremely appealing to some, for first-home buyers or those seeking loans, there has been a major fall in housing credit – currently sitting at its lowest result in almost eight years.
However, there is some good news for loan-seekers, in that the RBA have dismissed this idea and affirm that the majority of borrowers within WA have not been constrained by these tight lending standards. There has been a rise in non-bank lenders due to both the recent allegations of the Royal Commission and the tougher regulatory stance many bigger banks have taken as a result.
In just 18 months, the rental vacancy rate in Perth has fallen to 2.8% – the lowest rate in almost six years. As previously mentioned, it is debated that tightened lending standards from major banks may contribute to the limitation of property gains for some, but there has also been some organic progress within the local, corporate and interstate market when it comes to rentals.
Perth’s median rent is sitting at $350 a week, and at the end of the September – December quarter there were 6,865 properties for rent in Perth. With the vacancy rate falling and a significant increase in the volume of rental enquiries with real estate agencies across the state, the rental signs for 2019 are certainly promising.
Activities in the Property Sector
Improved economic activity is likely to have an extremely positive affect on all areas of the property market in WA. This includes any activity within the mining sector, population growth and a tightening of the state’s rental market. With consumer confidence on the incline, it is clear that the property sector’s steady progress will provide many benefits within Perth and WA.
As previously mentioned, the real estate market is strengthening – and as such, suburbs with a desirably high median price are now becoming more realistic for those looking to relocate. Perth’s western suburbs is a notable example, or there are also excellent buying opportunities within 15 kilometres of the CBD, including Dianella, Morley, Stirling and Hilton.
ACTON Real Estate
If looking to rent or buy a property within Western Australia, look no further than ACTON – the leading real estate brand in Perth. ACTON has been a dominant player in the Perth property for the past six decades and has plenty of wealthy experience across prestigious and more rural suburbs and locations in the state. The ACTON team is prepared to go the extra mile for their clients, and with offices strategically located across Perth and regional WA, there is bound to be an ACTON office near you that is ready to help get you settled into your dream property. Visit ACTON’s website today for more information.