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After a run of flat years in the wake of the resource sector downturn, early signs are that Perth’s property market is turning a corner, according to one leading real estate group.
Raine & Horne says favourable economic reports for Western Australia in January and February will set the tone for a 2017 rebound.
General manager for Western Australia, Craig Abbott, said he anticipates the key factors to be the performance of the retail sector over the Christmas period, the local unemployment rate and inflation.
The RBA’s February meeting will also be monitored closely, he said.
“For now, however, real estate confidence has picked up with 10% more people attending open homes or searching for properties online in the final quarter of 2016 compared to the previous year,” he said.
“While this activity hasn’t translated into stronger capital values, off-the-plan and recently built apartments, priced between $300,000 and $500,000, are attracting the attention of motivated buyers and investors.
“In addition, a number of residential development sales are a positive sign interest is returning to the Perth market.”
Raine & Horne Commercial Western Australia recently sold a residential development site in southern Perth, and has a development site under contract at 32 Cedric Street, Stirling with a private buyer.
This 782-square-metre site has development approval for 32 apartments and is selling for $1.48 million.
“Several purchasers lined up to secure the development sites, and while the final prices are a little subdued, it demonstrates the Perth residential market represents excellent value for developers and there is interest when the price is right,” said Mr Abbott.
However, he said developers remained cautious.
“They will only consider assets that are in prime locations close to valued amenities such as retail, transport and entertainment outlets, and where there isn’t an oversupply of nearby apartments.”
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