In 2020, fear is the new black.

Fear is back. With a vengeance. This time it’s not the economy scaring people, it’s called coronavirus.

The OECD says that Australia may be “one of the worst affected economies” from the coronavirus outbreak. At the same time, another headline screams, “Houses to Hit Record Prices in Weeks”. 

We are already seeing Investors entering the Real Estate market in Perth, after shifting their funds from the share market to a safer long term investment in the Property market. As one investor said, “I have lost big time on the share market cause of the Coronavirus  Scare, but my real estate investments are still returning a regular monthly return and the asset is still good.”

With such varied opinions – and in full knowledge that media often ‘hypes’ a story to attract readers or viewers – how are we to act if we are buying in today’s real estate market? And what effect, if any, will the coronavirus have on the Perth property market?

Well, first, what about “No Chinese buyers”! The percentage of buyers from China has long been over-estimated in Australia, especially in the day-to-day housing market. Homes will continue to sell well without foreign buyers.

Generally speaking, prices in the Perth Real estate market are unlikely to be impacted unless the coronavirus escalates severely. 

Perth real estate values are relatively low, and there’s only one way the market should go: Up! 

People still need to buy homes. Indeed, we Western Australians see our homes as sanctuaries. A home is the one place most of us feel safe.

What will or should change, however, are habits. Just as we are now taking sensible precautions in our daily lives, so must we take precautions in our real estate lives.

The one thing that must stop is hordes of strangers wandering through family homes. As buyers agents, our clients give us a detailed brief, and we do all the looking for them. We present them with recommendations, and once a home or property investment is selected, we negotiate the lowest price possible, following the transaction through to settlement. 

This process is how buyers agents in Perth earn their fee.

It’s incredible how few buyers realise an obvious point: There are 10,080 minutes in a week. And yet, when you want to buy a home, there are typically 30 minutes in a week to inspect most home opens with real estate agents.                               

This is where an experienced buyer’s agent in Perth can save you time and money. We’re looking all the time.

With the coronavirus scare, it’s your chance to appoint Buying Perth Real Estate to do all the groundwork for you, so you can enjoy being home safe with the family.

As a buyer, you probably don’t want to inspect homes with hordes of other strangers – many of whom may be coughing and sneezing.

If you see a home you like, you simply advise your buyer’s agent and let them do the groundwork for you.

As to the big question of whether prices will drop because of the coronavirus and whether you should delay your decision, the truthful answer is: no one knows. 

It’s unlikely, but the more significant point is: if you are a home buyer looking for a family home in Perth, what does it matter?

If you are buying a home and upon consulting with your buyer’s agent, you are confident you can safely enter the real estate market. And, if you intend to live in that home for many years, how will it affect you if, after you buy, your home’s value drops? 

While that may briefly concern you, a price drop will make no difference to your enjoyment of your home.

Buyers often ask: When is the right time to buy? The answer to that question, if you are a family home buyer (not an investor) is this: The right time to buy is when you find a home you love that you can afford. Never mind what is happening in the rest of the world. Focus on what is happening in your world. 

As always, of course, in all aspects – financial and health – your priority should be to stay safe. The only thing we have to fear is fear itself.

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