Subscribers and online readers of The West Australian will have seen the headline article today concerning Perth’s Housing market, and the “green shoots”.
Some of the biggest names in the property industry believe the Perth market has bottomed out and we can expect to see a recovery over the next year.
According to The West Australian, Valuation expert Gavin Hegney, builder Dale Alcock, Housing Industry Association executive director John Gelavis and REIWA boss Hayden Groves all believe more significant falls in house prices is unlikely. Urbis director David Cresp predicted prices would start rising next year.
The West Australian also quoted Mr Hegney saying there were signs that Perth had already started the first stage of recovery, which was the resurgence of trade-up buyers pushing up the price of entry-level homes in aspirational areas, such as the inner city, western suburbs and the waterfront.
“I am 90 per cent certain we’ve hit the bottom and probably 80 per cent certain we have passed the bottom because recovery is already showing up in these areas, but it won’t show up across the board just yet.” Gavin Hegney as quoted in The West Australian 13/6/17
But we aren’t completely out of the woods yet. Rental and building markets are still at the low end of the market at the moment but recovery would follow an uplift in the established market.
It’s unlikely we will see a big property boom in the near future, and certainly not to the level seen in Melbourne and Sydney, but a recovery is most certainly welcome in the industry. Those who are in a position to take action now in the property market will benefit the most in the long term.
Original Article was published in The West Australian 13 June 2017