Despite gloomy predictions, the Perth market continues its soft growth. With Residex recording 4.26% growth for the three months to September and 4.2% year-on-year, the market in Perth is in better shape than many experts may have predicted.
“Despite the doom and gloom prognosis from a number of eastern states property commentators, the Perth property market continues to show resilience”, says Real Estate Institute of WA (REIWA) president Rob Druitt.
“A modest rise in the overall media house price gives further proof of a soft landing after the boom of 2006. The underlying fundamentals for WA are very sound and on the back of solid population growth and real demand we are likely to see the market continue to grow in the next 12 months, but at more modest growth rates in line with 5-10% per annum depending upon location.”
A dramatic increase in the level of stock over the last 12-18 months means this is now neither a buyers nor a sellers market, says Druitt. “Seller’s need to price attractively to sell quickly and buyers generally have a good range of properties to choose from.”
He adds that any current uncertainty in the market is likely to “evaporate” into the New Year, adding that “with some pent up demand we could see a push on the market in 2008. [It’s] an ideal time now for buyers in a more favourable market than they have seen in the past two and a half years.”
Port Hedland, in the Pilbara Region of WA, has experienced huge capital growth of late. In the year to September, Residex figures reveal a 27.31% increase; while the September quarter also saw a strong 7.72% gain. The median house price in Port Hedland is $658,500, while the average rent is $280 – a median return of 2.23%.