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Despite some commentators having a pessimistic outlook on the Perth property market, one pundit is predicting 2017 will be a year of recovery for WA’s capital city.
Nicheliving director Ronnie Elhaj credits the recent increase in WA’s first home owner’s grant as the catalyst for change, believing it will boost the local economy and improve consumer sentiment.
On 1 January, the WA government increased the first home owner grant by $5,000 to $15,000 for 12 months.
“2017 is set to be a year of incremental recovery on a month-by-month basis, with the grant increase giving the market a much-needed push in the right direction,” Mr Elhaj said.
Mr Elhaj expects the grant to create up to 3,000 jobs at a time when employment rates are at a “disheartening” low.
“This consequential decrease in unemployment is a natural positive as is the flow-through effect of contributing funds back into the local economy.”
Mr Elhaj said the grant would result in new residential builds which could double the 650 figure predicted by the state government.
At the same time, he also dismissed concerns of an oversupply.
“It will drive short-term demand, producing a fruitful market in 2018 and beyond,” Mr Elhaj said.
“For potential buyers with their eye on an established home, now is a better time than any on making the purchase.”
Meanwhile, REIWA reported that median home prices rose in the last two months, an indication, according to Mr Elhaj, that the trade-up sector is also on the mend.
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