The West Australian
July 20, 2024
By: Nelson Liu
Strong sales, price growth and enquiry are continuing to reinforce Perth’s suburbs as a formidable property market against research suggesting a decline in Western Australia’s housing status.
Our locales remain sought-aft er amongst investors and buyers despite being excluded on real estate analysis group Hotspotting’s The Price Predictor Index Winter 2024, which depicts Australia’s top suburbs with increasing sales volumes.
“Perth property prices continue to rise, fuelled by strong population growth and constraints in the building industry and rental market,” REIWA CEO Cath Hart said.
“Sales figures in the first half of this year are comparable to the same time in 2023, with the high demand for established property evident in the record selling times for houses and units.
“We expect further price increases over coming months unless there is an unforeseen change in demand and supply.”
Harcourts Mandurah Licensee Paul Blakeley said there were certain aspects contributing to Perth’s ongoing popularity.
“We’re still the second cheapest state in the country,” he said. “
When you’re looking at what the income ratio to mortgage payments is, I think we’re still in the 30-odd percentile range when the eastern states – especially Sydney – are 50 percent and above.
“It just goes to show affordability is still quite strong in WA, and from what we’re seeing now, this will still have some legs in the next year.”
Mr Blakeley said rental yields were also performing well, especially when tenant enquiry, job prospects in WA and migration to the state were taken into account. The Price Predictor Index Winter 2024 included the Top 50 Supercharged Suburbs around Australia where sales volumes steadily increased over more than four consecutive quarters.
In 2023, more than a third of WA suburbs were featured on the list, but the state did not secure one entry this year. “The latest sales volumes data suggests the Perth market has passed its peak in terms of buyer activity and is unlikely to continue leading the nation on price growth, although the low level of listings of properties for sale is partly to blame,” Hotspotting Director Terry Ryder said.
“Our new analysis shows a significant drop-off in sales across Greater Perth in the past six months.
“There are a number of other signals the peak has been reached, or passed, in this market.
This includes longer days on market in some areas and price decline at the top end of the market.” Mr Ryder advised investors and buyers to exercise caution when considering Perth’s market, suggesting many risked making poor cost, location and property decisions to secure a property.
On the other hand, Ms Hart said Perth offered good investment and purchasing opportunities but due diligence was essential. “Investing should primarily be a financial decision,” she said.
“People need to do their research and consider a range of factors, including potential capital growth, steady rental income, yield and the appeal of the property.
“Potential buyers should be aware of property prices in their preferred areas and how this affects their budget. “They must also have their finance approved, so they are in the position to make a strong offer when they find a home they like.”
