Perth Rental And Sales Activity On The Rise

While Perth’s property prices have continued to fall throughout 2019, green shoots are appearing which suggest West Australian property slump could be close to its long-awaited end. Activity improved across both sales and rentals in Perth throughout October with the Real Estate Institute of Western Australia (Reiwa) data revealing Perth rental and sales activity on the rise by 2% in sales transactions and 16% in leasing transactions.

While WA’s housing fortunes aren’t rebounding as quickly as the Eastern States, REIWA Deputy President Lisa Joyce said it was encouraging to see the market activity lift across both sectors as well as improvements on all aspects of the rental market as well.

 

Perth residential sales market

Core Logic’s latest home value index shows the rate of decline in dwelling values in Perth at 0.4% in October representing a slowdown in the rate of price decline as Perth trends towards a more stable property market.

Core Logic research director Tim Lawless said it was becoming increasingly clear the housing market was gathering pace off the back of lower mortgage rates and improved access to credit.

Demand for housing is responding to stimulus measures, including mortgage rates which are now lower than anything we have seen since the 1950’s and improved mortgage serviceability test following the recent reductions in interest rates.

 

Perth Real Estate

Perth Real Estate on the rise

In terms of a rolling three-month trend, Perth values recorded their smallest decline in 14 months according to the Core Logic data.

Lisa Joyce said this was pleasing to see and that in the coming months, Perth could expect to see a gradual improvement similar to the other capital cities in Australia.

She went on to say that although overall prices remained the same as the previous month, reiwa.com data showed that 26% of suburbs saw improvements in the median sale price.

She said there had been a lot of uncertainty surrounding the property market this year. While we are not seeing the significant shifts in levels we experienced during peak times, it is a positive sign to see the increase in sales and rental activity.

Perth remains favourable for buyers and investors at the moment. Joyce’s advice for those thinking of purchasing their first home, or trading up or investing, is to act soon. With indicators beginning to move, the opportunity to take advantage of the current conditions may be short. 

For more information on Buying Perth Real Estate, contact Clive Elliott on 0412 926190 or enquire here.

When will the local market gain again?

In their recent analysis of the real estate market across the nation’s capitals, domain.com.au put Perth under the microscope with the following insights.

Perth

To buy property in Western Australia is totally different to other parts of Australia and in fact throughout the world.

Perth’s rental market has strengthened over the year, reflected in rent price increases and a falling rental vacancy rate.

Median asking rents for houses in Perth were up 5.7 per cent in the year to September, to $370 per week. This marks a recovery from a rental price trough of $350 in September last year. It is also the strongest annual growth rate in house rents for more than six years, when the mining investment boom was ending. Nonetheless, Perth remains the cheapest capital city to rent a typical house.

Perth units saw a similarly strong rise in rents year-on-year, at 3.3 per cent (although unit rents remained unchanged over the quarter, at $310).

Rents increased the most in Perth’s inner suburbs over the past year, while rents were unchanged in Mandurah.

Perth has seen the second steepest annual decline in the rental vacancy rate behind Darwin. The rental vacancy rate fell by 70 basis points to 2.7 per cent in September 2019.

These figures point to a tighter Perth rental market. While this is not good news for renters, it may be a sign of a broader turnaround in the Perth property market. Stronger population growth, combined with a slowdown in new housing construction, is seeing vacant properties being slowly absorbed. The WA economy is also rebounding, driven by improving conditions in the mining sector.

Republished from domain.com.au, October 2019

Who’s on your side when you purchase a property?

If you’re buying property, you may fare better with a Buyer’s Agent on your side.

Using a buyer’s agent to assist in purchasing a property has not been well used in Western Australia to date, but in the Eastern States, using a Buyer’s Agent is becoming increasingly popular.

‘Having a registered buyer’s agent on your team can be a brilliant move because we can invariably buy at a better price than the average home purchaser can do,’ says Clive Elliott from Buying Perth Real Estate.

Clive Elliott is a seasoned real estate agent having operated his own agency for many years. These days, he works primarily as a buyer’s agent.

“The days of real estate agents taking prospective buyers around to homes offered by other agents when their listings don’t match what the buyer wants, have virtually gone,” he says.

“It concerns me that in many cases people who are time-poor settle for a home below their expectations while other people are not strong negotiators, so they end up paying more than they could have,” he said.

A buyer’s agent’s job is to find properties that match the brief from a buyer.

The search made by a buyer’s agent considers the offerings of numerous agencies and sometimes off-the-market properties.

“Many people forget that a real estate agent is paid by the seller to get the best price possible whereas a buyer’s agent, knowing this and having worked in price negotiations, is motivated to work on behalf of the buyer,” Mr Elliott said.

“We can often cover our entire fee and more by having the knowledge of current property values and knowing how to negotiate accordingly,” he said.

With more extensive knowledge than most people of the property market, a buyer’s agent can also source a property for investors with better prospects for capital growth or rental yield and seek out properties being sold off-market’ (sometimes known as ‘silent sales’) which never appear publicly.

“We also help our buyers to ensure they have included the correct conditions in their offer to purchase and when needed, assist them in obtaining suitable finance brokers and conveyancers,

“All up, a buyer’s agent removes a lot of stress from property purchasing, saves the buyer a huge amount of time in searching for the right property, and we invariably save the buyer quite a lot more than our fee for service,” Clive said.

To learn more about how a buying agent works, you can visit buyingperthrealestate.com.au

The Best Property Buying Opportunities in Australia Are Right Here in WA!

Every now and again we’re asked by purchasers whether it’s best to buy now, or wait, in the hope that prices will drop further.

They’re mindful of the real estate adage: ‘timing is everything’.

The answer varies, but it’s fair to say that 2019 represents a good time to enter the West Australian property market – whether as a first home buyer, a homeowner upgrading to a more substantial home, or as an investor.

Some key factors lead us to think that 2019 represents a great opportunity.

1) Affordability
Several months ago, it was announced that WA had become the most affordable state for property in Australia.

According to a housing affordability study produced by the Real Estate Institute of Australia and the Bank of Adelaide, only the Northern Territory and the ACT were more affordable.

The report also found that the proportion of income required for meeting loan repayments in WA improved to 22.7% in the September 2018 quarter, a decrease of 1.2% from the June 2018 quarter, while the average loan size reduced 4.6% to $339,943.

By comparison, the proportion of income required to meet loan repayments in NSW is 36.6% with an average loan of $469,589.

Further, rental vacancies across Perth are down to 2.6% – a significant decrease from 9% a few years back.

Rental vacancy rates have decreased dramatically in quite a few locations, and if the common trend ensues, rental yields will begin rising when the vacancy level falls below 2.5%.

2) Massive new mining investment forecast
It seems set to happen all over again!

2014 saw the end of a property boom in WA driven predominantly by massive spending from the mining industry on mine site expansion and large scale construction.

Forecasted investment in upcoming projects in the Goldfields and Pilbara regions totals around $75 billion.

This spending on infrastructure and mine site expansion includes projects related to Iron ore, Lithium, Liquid Natural Gas, Mineral Sands, Gold Mining, Urea production, and a Nickel smelter.

As these projects get underway, there will be considerable demand for workers.

Already, demand for skilled professionals has risen dramatically, leading to an increase in the tempo of top-end property sales with median prices of exclusive localities experiencing substantial gains.

The Western suburbs have fared nicely as well as the Canning Riverside suburb of Mt Pleasant.

The median price of homes in Mt Pleasant has increased by 26% in the 12 months to March 2019.

People who purchased while the prices were low have fared very well, and there is little doubt that the next few years they will see further capital growth.

According to reports, around 40% of Perth suburbs experienced price growth over the year. We believe this represents an opportunity.

By contrast, quite a few suburbs – particularly those in the outer areas – have seen decreases in the median price as supply has consistently exceeded demand.

The question arises: how long will it be before they see a turnaround as well?

Massive demand for tradespeople and semi-skilled workers will likely follow the current demand for professional workers.

This influx of people will likely generate a significant increase in business confidence and, as a result, rental vacancies will decrease markedly to follow a similar pattern as the previous mining construction boom.

As the cycle goes, the property market will strengthen across the board, making 2019 a golden opportunity for people to buy in areas where prices are at their lowest.

3) The Election!
If the Labor Party wins the upcoming election, we can expect them to take action on negative gearing in the 2020 budget.

Their current platform is to allow negative gearing on established homes purchased before its budget. From then, negative gearing will only apply to new property purchases.

Timing is everything, so we make a point of monitoring the prices of established suburbs with strong investment potential.

These investments will have excellent long term rental potential, and if you hold for the long term, there is potential for strong capital growth.

Opportunity
The current market presents an excellent opportunity. We would urge prospective buyers to act soon rather than leaving their move to the point where everyone is trying to get in for Fear Of Missing Out. FOMO is real, but it’s not quite a reality. Yet.

Buying Perth Real Estate are experts at helping investors and homeowners to find properties that best suit them – saving them time and money.

If you’re considering a move, call us for a chat. There’s no obligation, and you will be surprised to discover what BuyingPerthRealEstate.com can do for you.

Clive Elliott – Principal

The Right Time to Buy Your Home is When You Find The Right Home

There’s an expression in real estate for prospective home buyers: ‘The right time to buy your home is when you find the right home’.

An interesting conundrum can arise for home buyers in Australia is when the very first home we find for them perfectly matches what they have described as being their ideal home.

Was it too easy? Are there better ones? An even more perfect fit?

It can be a problem, and the thought has crossed our mind that it might be better to hold off from presenting a buyer with the perfect match to their property requirements because of this dynamic.

While we’ve never done things this way, it can come as a surprise to buyers who have searched unsuccessfully only to have us come up with what they were seeking, first up.

Our recommendation is just this: while we are happy to keep a search going, there is one strong recommendation: ‘the right time to buy your home is when you’re presented with the right home’.

We recommend following your ‘gut instinct’ – if the home feels right, it probably is and, on that basis, it’s the right time to buy.

It can be a tragedy to put it a property on hold when a property feels like it is the perfect fit and then find it sold to someone else. Particularly if we only put it on hold because its discovery appeared to be too easy.

Our job is to find you a home that best matches what you describe to us – within your budget and in a locality desirable to you.

Sometimes the ideal home happens to be found very quickly; other times the task is a challenge.

Whichever it is, when you put us to the test, we take the task seriously and leave very few stones unturned in our search.

First home buyers, home up-graders, home downsizers, investors, Australians working overseas and overseas buyers can all benefit from our services.

Visit us at BuyingPerthRealEstate.com or call us on 0412 926 190 and we’ll let you know what we can do for you.