The worst is over for Perth property: HTW

There appears to be a lot of trepidation and a lack of consumer confidence in the Perth market, according to HTW’s February 2017 update.

The valuation firm says the softening conditions experienced throughout 2016 are likely to continue throughout 2017.

According to the Real Estate Institute of Western Australia, total listings on market currently sit at 14,444 properties, a slight decrease from the same time last year.

Listings on market peaked in March 2016 at 15,200 and have hovered in the low 14,000s since.

Traditionally, a balanced market is considered to be in the order of 12,000 listings, HTW says.

“The median sale price has tracked a very similar course, beginning 2017 at $520,000, being a slight decrease from the $533,000 reported at the same time last year,” the report says.

The rental market begins the year with a 6.6% vacancy rate, up a full percent on the same time last year.

HTW isn’t sure if Perth will hit the bottom of the cycle in 2017 but if it does, it expects it to be late in the year.

“We consider that the worst is over, with small fluctuations likely to occur throughout the year.

“Our prediction would be a median sale price at the end of the year in the order of $510,000.

“Is there good buying in the market place today? Absolutely, but research and local knowledge are the keys.”

The downturn in the Perth market has made it look like an attractive proposition in comparison to the country's other capital cities, HTW says.

“It would also not be an unlikely scenario that the current flurry of activity in Melbourne and Sydney leads to an increased focus on the comparative affordability of Perth,” the report says.  

“It has become extremely attractive in terms of value for money, with the added attraction of its proximity to Asia.

“We expect an oversupply of established housing stock sub $1 million, particularly in the outer suburbs, a significant increase in apartment and off the plan villa transactions sub $500,000 and scattered upgrade and speculative investor activity as the market attempts to pick the bottom of the cycle.”

A two bedroom unit at 93/22 St George Terrace, Perth (above) has been listed for between $695,000 to $745,000.

Similarly a two bedroom unit at 46/250 Beaufort Street, Perth (below) has been listed from $399,000.