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Ryder Property Research is forecasting an uplift in the Perth property market based on growing evidence of recovery.
The winter survey of sales activity for the Hotspotting by The Ryder Report says that there is growing evidence of recovery in rising sales activity and uplift in top-end suburbs.
The survey of sales activity confirmed the stronger showing than in the two previous quarterly surveys.
The report gave a positive ranking to 132 suburbs, which is a huge jump from the 17 suburbs viewed positively seven surveys ago.
The survey also has zero “danger” markets, which is another change. Growth markets have gone from zero in the first survey to 45 in the latest.
Terry Ryder, managing director of Ryder Property Research, said that Perth is rising from a low base but the momentum was evident.
“The momentum in the market is undeniable and it seems only a matter of time before some locations return to the strength of the pre-downturn days,” the MD said.
Mr Ryder said that Perth was seeing the first sign of a return to price growth, although some sources disagree.
“When city markets are at the early phase of a growth cycle, the upmarket suburbs are often the first to show growth,” the MD said.
Confidence in a sustainable upturn comes from a revival in the mining sector, with new jobs being created, according to Mr Ryder.
“As the WA economy improves, businesses thrive and businesspeople become more confident in their real estate purchases,” the MD said.
Mr Ryder said that these factors put together suggest that Perth can look forward to a return to price growth in the future.
“Putting all these factors together — more growth markets, fewer danger markets, more consistent ones and early signs of prices rising — provides evidence of a return to strength in the Perth market,” Mr Ryder said.
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