Industry trends and tips for building in this market
Things are starting to look up for Perth’s property market in 2019.
So what is happening in our current market?
While there was little growth in Perth’s median house throughout 2018, it is not all bad news for all sectors of the market, according to a number of market analysts.
Perth’s median house price grew 5.2 per cent to $510,000 during the December 2018 quarter.
However, latest Real Estate Institute of WA data found that while the Perth’s residential market was quiet during 2018, there were a number of pockets which bucked this trend.
In its top ten suburbs for highest price growth last year, seven out of 10 suburbs had a median house price of more than $800,000.
Furthermore, four of those suburbs recorded medians of $1 million and above.
According to REIWA “activity in the $800,000 plus price range has strengthened, which has created increased demand among buyers and contributed to the improvement in median house price that we’ve seen in suburbs like Mount Pleasant, Claremont.”
REIWA also says there has been a rise in demand in Perth’s luxury market, which was creating more competition between buyers, resulting in quicker selling times and higher sale prices.
They say this is evidence home owners in aspirational suburbs, who want to sell were likely to secure a sale at a favourable price.
The Property Council of Australia has found that the property industry in our state was more confident than most other parts of the nation.
Their data shows WA recorded an index score of 129, which was only one point down from the previous quarter. The national average was 123.
The Urban Development Institute of Australia (WA) has also released new positive research “that provides a confident basis for estimates that the next residential property market upswing in Western Australia will occur within 12-18 months.”
Their research into property cycles in the state, over a three decade period, has shown the average length of a property market cycle spanned five years from “trough to trough.”
They found a distinct two year delay between an uplift in mineral exploration expenditure and a corresponding uplift in dwelling commencement figures in WA.
The good news is the UDIA WA believe that looking at the current mineral exploration expenditure figures, the market was set to lift in 12-18 months.
Our top tips in this market
If you are thinking about building a new home in 2019 and upgrading where you live, this market is a great time to do it. Trading up means whilst you might not get as much selling your existing home, you will get great deals on house and land in this market, making you much more money in the long run.
However, consider the following tips in this market:
Want to know more about building with Pindan Homes? Contact us on 1300 104 908.
- Do your research and get to know the market
- Be realistic about where you want to buy and your budget for that dream home
- Draw up a list of ‘must-haves’ and ‘nice-to-haves’ for your ideal property – remember when you are building, homes can easily be customised to create those dream spaces
- Talk to the experts such as real estate agents, builders, developers and mortgage brokers – find out what your existing home is worth and what you can afford to spend on the new home
- Get your finances in order. This includes knowing your credit score and having your latest tax return on file as these may affect how much you can borrow.
Source: Pindan Homes