Despite Recent Improvements in the Perth Housing Market, Do not Expect Prices to Climb in the Next Years
The Western Atlantic real estate market is finally recovering after several years of sharp decline, but investors should not expect capital growth any time soon.
Strong credit restrictions are a factor, as is the fact that Perth's economy is still not particularly strong, limiting the potential for population growth and demand to absorb the existing housing stock. .
BIS Oxford Economics' 2019 to 2022 report on residential real estate prospects predicts future growth for Perth, but not at significant levels.
"The median price of housing is forecast to increase by 7% in the next three years to June 2022, with a corresponding 8% increase in the median unit price," says Angie Zigomanis, Director. associated with BIS Oxford Economics.
"As conditions can hardly improve in the immediate future, significant price increases are not expected to repeat before 2021/22, as the economy shows stronger signs and stocks surpluses are absorbed. "
Nevertheless, steps are being taken to improve the availability of employment in the state. According to the latest CoreLogic Cordell House index price report, the construction sector is weak, the annual growth rate of the state's construction costs falling from 3.2% to 2, 9% from June to June 2019. However, the mining sector and construction projects under approval, which helps to give a boost to the growth of employment.
During the 2018/19 fiscal year, the decline in real estate prices also resulted in a corresponding increase in the share of affordable properties sold in WA. Cameron Kusher, an analyst at CoreLogic, notes that 31.2% of home sales are real estate less than $ 400,000, up from 28.7% last year; at the same time, 55% of the units sold were priced in the same range. This proportion represents a considerable increase compared to 50.2% the previous year.
Even with cheap properties selling like hotcakes, the $ 1 million Perth market did not suffer much. Multi-million dollar home sales still accounted for 10% of all home sales in the capital, while 4.1% of all unit sales involved high-end properties in the top quartile of the capital. walk.
Despite a mediocre performance in recent years, Perth retained a place in the Knight Frank Prime Global Cities Index for the second quarter of 2019, at number 32.
SUB-URBAN PROJECTOR
ROCKINGHAM: Real estate prices continue their downward trajectory
Western Australia may be recovering, but the suburb of Rockingham, near Mangles Bay, has not yet felt the effects of this phenomenon.
House prices and unit prices are in free fall since July 2014, and the 2018/19 period has not yielded encouraging results, with values ​​falling by 5% for homes and 6, 5% for units. Nevertheless, there was some positivity in the unit market as rental rates increased by 5.4% in the 12 months to May 2019, bringing the weekly average to $ 295. This was associated with an average rental yield of 5.4%.
As the main center in southwest Perth, Rockingham has many facilities, including schools and a campus of Murdoch University.
Education: The Public University of Murdoch has a campus in Rockingham
Rent: Unit rent rates increased by 5.4% in one year to July 2019
Top suburbs:
Bligh Park
,
balga
,
Hebersham
,
St. Peters
,
Mayfield
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