By Matthew Hughes, Capital Property Advisory
Perth’s property market has recently experienced a significant drop in days on market, along with a noticeable increase in buyer activity.
Our median house price has risen slightly since the beginning of the year, improving by a modest 0.9%. Price increases in the rental market have been more pronounced, with rental prices jumping a massive 5.8% over the same period.
Anecdotally, our acquisitions team have reported a substantial uplift in competition for quality property – having recently walked away from a negotiation when we learned we were competing against 31 other offers! Whilst this was an outlier, it is not unusual to be competing against five or more offers at the moment, and pricing is gradually creeping up again – an element of tempered aggression is key to securing property in Perth now, and for the foreseeable future.
According to a report by Hotspotting, a real estate analyst, Perth has been named as the most vibrant market and a top property performer in Australia. The report reveals that Perth has the nation’s strongest performing local government area in Stirling, with two-thirds of Perth suburbs maintaining high levels of sales activity in defiance of the nationwide downturn pressures. The City of Canning was highlighted as one of the top 10 markets in the nation, with six suburbs showing rising sales, two with consistent sales, and one with falling sales. WA suburbs in the nation’s top 100 include Armadale, Camillo, Carine, Coolbellup, Hamilton Hill, Heathridge, Hocking, Kelmscott, Lynwood, Midland, Mount Tarcoola, Parkwood, Pearsall, and Willagee.
Stirling, which covers 100 square kilometres from Scarborough in the west to Inglewood in the east, and Beach Rd in the north to Herdsman in the south, has been deemed the nation’s best market twice, having taken the mantle in winter 2018, as well. Terry Ryder, the founder of Hotspotting, said that the City of Stirling “seems to perform well in all kinds of markets because of its location, transport links, shopping facilities, educational amenities and lifestyle features, including extensive parkland, golf courses and beaches. The Stirling LGA also appeals because it offers a range of price points, from suburbs in the $300,000s and $400,000s to suburbs with median house prices above $1 million.”
If you’re looking to invest or purchase a home in the burgeoning Perth property market, it’s worth considering enlisting the help of a buyer’s agent to help you navigate the current, chronically under-supplied and highly competitive market. Capital Property Advisory offers a range of buyer’s agency services that can help you find the right property and negotiate a favourable outcome. With local knowledge and expertise in the Perth market, they can help you make informed decisions and achieve your investment goals.
This article was written by Matthew Hughes, Managing Director of Capital Property Advisory, a property buying, acquisition and development company based in Subiaco. Matthew holds a triennial certificate as a licensed Real Estate and Business Agent, and a Diploma of Finance and Mortgage Broking Management. He is accredited by Property Investment Professionals of Australia (PIPA) as a Qualified Property Investment Adviser(QPIA®). He is also the former Chairperson of the REIWA Buyer’s Agency Network Committee.