With 2017 a year of stabilisation for the property market here, I expect 2018 will be a year of moderate growth. New construction activity, along with declining levels of stock on the market, provides strong evidence that we are headed into a market recovery phase.

UDIA’s latest data reflects increased confidence in the market from the development sector, with lots under construction for release in the next six months up nearly 10 per cent.

This positive sentiment is reinforced by recent increases in building and finance approvals and the fact that consumer confidence is at a three-year high. The latest Housing Industry Forecasting Group report also predicts an upward trend in new dwelling commencements over the next couple of years.

In terms of areas to watch in 2018, the State Government’s roll-out of MetroNet will stimulate growth in areas near the first new stations at Yanchep and Thornlie. Scarborough, Fremantle and Subiaco, which are undergoing major rejuvenation, also pose good investment potential.