Despite Western Australia’s Economic Downturn, Perth’s Real Estate Market Still Offers Plenty Of Different Opportunities For Buyers.

REA Group Chief Economist Nerida Conisbee shares her top five tips on Australia’s west coast market.

1. Now Is A Great Time To Be Buyer In Perth

If you have a stable job and your industry isn’t in chaos like WA’s mining sector, now may be the ideal time to jump into Perth’s property market.

Conisbee says with banks offering sensationally low-interest rates, a general bottoming out of the Perth market which has led to greater affordability and one of the most generous first homeowner grant schemes in the country, buyers can still snaffle a bargain.

“In any market, you will find that although prices may be dropping overall, there are always pockets of opportunity and that’s definitely the case in Perth,” she says.

“There are some really good bargains around. If you have got a decent job and you’re in an industry where you’re likely to maintain your job, right now is probably the best time to get into the property market if you want to get something good.

“I think there’s a general sense that although Perth prices are dropping still, the early signs that in some premium suburbs we are seeing some strong price growth is very, very positive and shows there are a few positive green shoots in the market and things to look forward to.”

2. Check Out The Buyer Incentives

There’s nothing like a freebie or money-saver to pique interest, no matter what the purchase.

More and more agents are offering generous giveaways – from iPads to cars – in a bid to get prospective buyers to sign on the dotted line.

“In the house and land space we’re hearing about cars being given away when you buy a house.

“They’re really great incentives so why would you stick it out for two years if you know you can buy (property) now and get a free car?”  Conisbee says.

She says the WA Government’s bolstering of the First Home Owners Grant from $10,000 to $15,000 for 2017, as well as increases in Keystart’s metropolitan income limits by $20,000 were encouraging.

Keystart is a state government loan assistance scheme designed to help those who might otherwise struggle to get a loan such as public housing tenants or those with a disability.

“Governments can really play a role and the fact that the WA Government is trying to kick start that first-home buyer part of the market is really good.”

“If you’re a first home buyer and you’ve got a stable job, it’s probably not going to get much better than this if the government is throwing $15,000 at you and we’re at really high levels of affordability,” she says.


3. Price Growth Is Still Occurring

While Perth generally is experiencing a downturn in property prices, Conisbee says there are certain suburbs that are still experiencing growth.

“Although the market is declining overall, there are certain suburbs that are experiencing pretty strong price growth at the moment,” she says.

CoreLogic RP Data shows that houses in Boya, Menora, Eglinton, Kallaroo, Woodbridge, South Guildford and Parkerville all experienced increases in median sales prices in the 12 months to November 2016.

Similarly, units in Mount Pleasant, South Fremantle, Bayswater, Mount Hawthorn, Waikiki, Forrestfield, Attadale, Shenton Park experienced some price growth in the same 12-month period.

4. Don’t Discount Apartments

Across Perth, demand for houses is higher than apartments so it might be worth factoring that into your buying strategy.

“Demand is well down in Perth, it’s still dropping, but house demand is much higher than apartment demand. One of the problems has been the slowdown of economic growth in Perth and that’s led to a lot of uncertainty for buyers.”

“One of the problems for Sydney, although it’s seen strong economic growth, is a lot of people can’t afford to live in that city because it’s so expensive. Whereas Perth, because it’s becoming so much more affordable, more people will stay in Perth because housing costs are a bit lower and that will create jobs longer-term,” she says.

5. Perth’s Recovery Will Be Swift

Conisbee predicts that Perth’s property downturn will not be a decade-long prospect.

“There’s a lot of reasons to buy now in Perth rather than wait a couple of years when the market starts to recover and prices start to rise.

“It’s not so dire that there’s going to be no price growth for the next decade, it’s just more that economic growth has slowed quite a lot and it needs time to recover,” she says.

“This isn’t a decade-long downturn, it’s a downturn that’s going to go for a couple of years, but things will turn around,” she says.



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