BULLISH OUTLOOK FOR WA ECONOMY
Announcement posted by Smartline 26 Apr 2018
Speaking before a parliamentary committee in February, Dr. Lowe suggested that the state’s employment rate and business investment growth are strong indicators of overall economic health.
“So we’re starting to see more self-sustaining investment growth in WA in the mining sector and that’s picking up conditions in Perth.
“It’s not a boom again but there’s more sustainable investment going on and that’s helping the WA economy, which I think now has turned the corner.” 1
With the national inflation rate remaining under 2% for the last quarter and the RBA cash rate remaining at historic lows, conditions are optimal for job creation and property value growth.
Justin Smith, Principal of Smartline Rockingham, noted that some of Perth’s exclusive suburbs have started to see dramatic spikes in the value of property sales.
“It’s normally a leading indicator of the overall property market. Sales in more exclusive suburbs like North Fremantle and Applecross have experienced house price growth in excess of 24% in 2017,” Smith said.
There are a couple of reasons for the sharp increase in these suburbs. Firstly, those with the means to buy into one of these suburbs realise that current prices reflect value for money. Secondly, it’s a sign that the decline in price growth has turned the corner and demand is picking up again after a lacklustre 3 years.
“For those looking to upgrade or invest, the next few months present a unique opportunity to do so before we see similar 25%+ growth in prices spread to the outer suburbs of Perth, as predicted.”
This is welcome news for those who have seen the value of their homes or investment properties decline steadily year on year. It will now be a waiting game to see how much value the property market can recover in 2018.
The West Australian Newspaper, 17 Feb 2018, Shane Wright