As the national housing downturn eases, Perth continues its gradual return to form, showing increased stability
Perth is still far from having recovered the glory that it had had during the boom of the mining industry, but it is gradually regaining a strong position.
"Although they are far from back in times of economic prosperity, Perth and WA seem poised to gain stability and moderate growth," says Ian Hosking-Richards, CEO of Rocket Property Group.
"Population growth should accelerate so that any significant increase in prices, which in turn depends on employment growth, is currently dull but should accelerate over time. "
The recovery in Perth is fragile at this stage and credit restrictions are helping to slow the momentum of the market.
However, Hosking-Richards is confident about the future of this city.
"The return to form can be slow, but the long-term prospects are good."
Indeed, Perth's rate of decline remained stable at 0.4% for the two months to April 2019, which clearly indicates that the market is gaining ground.
"March and April 2019 recorded the lowest level of decline since June 2018, which is an encouraging sign in a difficult market," said Damian Collins, president of the Real Estate Institute. from Australia.
"We do not expect a significant increase in prices in the immediate future; however, prices seem to start to stabilize. "
That being said, Collins warns that investors must also pay attention to the political situation of the country and should not get excited too soon.
"While these latest figures indicate that we may be seeing signs of recovery on the horizon, our local market is still fragile," he said.
"We need the governments of our states and our federal government to make every effort to support the recovery of the Washington State real estate market – not to hinder it."
Rents start to increase
Data from the Washington State Real Estate Institute show that the number of properties for sale has decreased by 3% from March to April 2019, but that the number of listings for rent has increased of 7%.
"This comes at a time when listings for sales have begun to decline, although sales remain low, which could indicate that sellers are choosing to withdraw their ownership from the market and attempt to rent it instead. "Collins says.
Indeed, in parallel with real estate prices, weekly rental rates in WA have increased, with Stirling, Mindarie and Rivervale leading the pack.
SUBURB OF WATCH
NEDLANDS: Facilities Strengthen Luxury Suburbs
Nedlands, one of Perth's luxury suburbs, has been on a bumpy road in recent years, but business seems to be picking up steam.
Despite a 0.7% drop in house prices up to April 2019, the median value remains above $ 1.5 million. Unit prices also rebounded 10.8% to reach a median of $ 638,852. However, the rental market has a different story: weekly rents for houses and dwellings fell by 10.8% and 4.4% respectively in the 12 months to January 2019, suggesting that it is more of a buyer's market than a tenant.
The Netherlands remain in demand because of important benefits, such as the proximity of the University of Western Australia and the Sir Charles Gairdner Hospital.
Conveniences: Nedlands residents are close to amenities such as schools and hospitals
Price: Nedlands is one of Perth's most expensive suburbs, but its growth is steady
