WA economy the key to property market growth

Announcement posted by Smartline 28 May 2018

WA was recently ranked the most affordable Aussie state, with Perth the cheapest mainland capital city to live in. A Chamber of Commerce and Industry review is projecting that the state’s economy will grow 0.9 per cent next year, and 2 per cent the year a

Looking at property market, confidence is returning among buyers and sellers. Median house and unit prices are stabilising in Perth; unit prices remained the same last month, while the median house price rose by 0.5%.

Some areas are showing particularly high performance including:

· South Perth/Victoria Park

· Belmont

· Vincent/Stirling SE

· Western Suburbs

· Nedlands

· Dalkeith

· Fremantle

· City Beach

For units, the stand-out areas are:

· Joondalup South

· Cockburn

· Stirling West

· Bassendean/Bayswater

· Stirling East

Justin Smith, Smartline Rockingham Principal, said that construction rates and economic confidence are being translated into the rise in median house prices.

“We’re expecting the second half of 2018 to build on these encouraging results,” Smith said.

“While 0.5% rise in median house prices in a month may seem small, over the course of a year it would equate to a 6% jump, which is the trajectory we are forecasting.”

The Real Estate Institute of Western Australia (REIWA) and the Housing Industry Association (HIA) have predicted a 7% increase in residential building this year and Smith notes that this is a good leading indicator for the market as a whole:

“Residential construction rates reflect investment into the property market. With slower markets, most investors buy existing dwellings and minimise their risk. When investors spot an opportunity for growth, they go all-in, and choose to knock down and invest in quality dwellings.”

For more information about the 2018 WA property outlook, please contact Justin Smith and Smartline Rockingham.