South-west WA property market conditions remain soft: HTW

South-west WA property market conditions remain soft: HTW
South-west WA property market conditions remain soft: HTW

The residential property market in the south-west of WA has weakened with reduced demand and values, however the market is quite mixed with some particularly sought after properties holding their values, according to a recent update from HTW.

The valuation firm says the volume of sales generally remains reasonable with adequate stock movement in most localities.

However, the top end of the market continues to be soft with an overall weak demand, the firms says.

“The exception is that there does seem to be reasonable demand for well-located properties that present to a high standard,” the report says.

The rural residential market is also continuing to slow with the majority of sales being below $1 million.

This market is experiencing extended selling periods and rents have fallen but are starting to stabilise while building activity has weakened.

“The slowdown in the state resource sector, continued weakness in the Perth property market and general uncertainty of the WA economy has promoted a downturn throughout the south-west WA real estate market,” HTW says.

“The extent of the downturn ranges from mild to moderate depending on the location and property type.

“As always is it difficult to predict future market conditions however we expect the year ahead could be more of the same or that the market may bottom out and stabilise.”

There are no significant drivers to suggest values will increase and there is limited demand from international buyers to spur the market in the region, the firm says.

It suggests the WA state government’s decision to increase the first home owner’s grant from $10,000 to $15,000 for 2017 could have a positive impact on the market.

“This is viewed as maybe having a stabilising effect but unfortunately the increase is unlikely to be high enough to overcome the negative factors influencing property values, for example the state’s high unemployment.

“We would recommend caution as some market segments are in decline and it remains unclear if the market has bottomed out.”

A two bedroom unit at 1/16 Wellington Street, Bubury (above) has been listed from $350,000.

Similarly a three bedroom house at 95 Wisbey Street, Carey Park (below) has been listed for over $265,000.

South-west WA property market conditions remain soft: HTW

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Western Australia Htw

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