WEEKEND WEST
Leading industry experts across the Perth and WA residential markets share their forecasts for the coming months, including the hotspots for buyers to watch.
PEET LIMITED MANAGING DIRECTOR AND CEO BRENDAN GORE
WA market conditions will continue to favour buyers in 2018, with home prices expected to remain stable. Homebuyers will also benefit from greater choice in housing options, a spin-off from the challenging and sustained market conditions which have driven industry innovation and ultimately, the creation of a new generation of highly appealing and affordable housing products.
There is great value to be found in all corridors across Perth in both land and newly completed homes, such as terraces and apartments.
AREAS TO WATCH:
- New land. The rapidly growing outer metropolitan corridors in Perth’s north-east, east and south are real property hot spots, particularly for first homebuyers.
- For apartments and townhouses, buyers should explore the exciting range of urban style developments now appearing in the outer metropolitan suburbs, which are extremely innovative and designed to be highly appealing and affordable.
- Affordable coastal locations. Beachside living is no longer the reserve of the wealthy, with extremely well-priced house and land packages available in Perth’s new coastal communities, from Yanchep to Mandurah.
LANDCORP CHIEF OPERATIONS OFFICER DEAN MUDFORD
Static interest rates will continue to instil market confidence, especially within the first homebuyer segment.
Low interest rates and realistically priced new and established housing opportunities have created the perfect buying conditions. Buyers are seeing an opportunity to get a foot on the property ladder as values start to climb, albeit slowly, and the development industry works harder to offer value for money in what has become a very competitive environment.
Development within existing suburbs will continue to create a range of diverse housing opportunities for buyers to become part of an already established community enhanced by improved shared spaces and parklands. Research tells us apartments have established themselves as a legitimate option for more and more buyers, as they move towards a lockup-and-leave lifestyle complemented by good amenity and transport connections.
AREAS TO WATCH:
- Our love affair with suburbs with good access to the coast will continue and the expansion of our road and rail networks will generate new, affordable lifestyle opportunities in and around train stations.
- In regional WA, the cities of Bunbury and Albany will firmly establish themselves as legitimate destinations with diverse housing choices in and around centres of activity.
SATTERLEY CEO NIGEL SATTERLEY
We are heading towards reaching the bottom of the market, so there really is no better time to buy. The number one thing I always tell people is to look for real value.
Cheapest isn’t necessarily best – you want to be close to shops, schools, transport links and employment to maximise your investment in the long-term. After all, the family home is the largest investment most people will make in their lifetime.
AREAS TO WATCH:
- Coastal areas such as Kallaroo, Iluka and Padbury. • Close to CBD and still affordable like Joondanna and Tuart Hill.
- Well-established suburbs close to employment and amenities such as Hamilton Hill and Willagee.
- High-growth areas such as Harrisdale and Piara Waters.
UDIA WA CEO ALLISON HAILES
As expected, 2017 was a subdued year with land and housing prices starting to steady. According to UDIA’s latest figures, the average new lot price in Perth increased by 3.9 per cent in the year to September 2017.
UDIA is confident that, as we head toward the end of the year, we have reached the bottom of this market cycle and green shoots are beginning to emerge.
We expect 2018 to be a year of incremental growth as the state’s economy strengthens and interest rates remain at record lows. Those thinking about purchasing property should consider the current market a good time to buy before values begin to increase again in the coming year.
AREAS TO WATCH:
- Locations around future Metronet stations will likely attract strong growth given the increased connectivity and amenity that development will bring. Including suburbs such as Canning Vale, Alkimos and Yanchep.
- Redevelopment in Scarborough and the proposed redevelopment of Subiaco Oval is also likely to have a positive impact on demand for housing in those areas.
REIWA PRESIDENT HAYDEN GROVES
I infamously refer to 2017 as the year of the ‘long bottom’ – that is, the bottom of the market cycle is here but it commenced at the beginning of 2017.
As we look back in 2017 I think we will see it as the year of stability. We’ve seen median house prices not fall from the June quarter to the September quarter, and the June quarter median house price dip was very moderate from the March quarter. Stock levels have fallen from this time last year and stabilised, and the levels for leasing properties have fallen significantly.
We still have low sales volumes, but it is marginally better than it was in 2016, which was a real low point in transactional activity. From here the market should start to see some upward movement, but it will be moderate.
AREAS TO WATCH:
- When it comes to the percentage of housing available in particular suburbs Nedlands and Cottesloe are very low down the list. So that tells me that people in those suburbs are holding on. Now we have a shortage of stock, which of course drives prices up.
- Places like Ardross and Applecross will be pretty strong markets.
- Melville will be a pretty strong market emerging in 2018 with urban renewal going on.
- Floreat is very strong and tightly held, as well as Churchlands and Swanbourne.
- Areas around High Wycombe and Forrestfield are going to be positively affected by growth of the public transport corridors.