2017 brings new hope for Perth Property PricesDecember 14 2016
A positive turn in 2017 could be on the cards for Perth Property Prices, according to one industry figure, who says the sector is close to the bottom of the cycle.
QWest Paterson Chairman Warwick Hemsley says there are positive economic signs which may provide a boost to property next year; despite figures from Corelogic RP Data this week showing a 3.7 per cent overall drop in Perth home prices in the past 12 months.
“While (the latest Corelogic RP Data) confirms what most of us already know; Perth property values are in decline, we may be
looking at the bottom of this cycle relatively soon,” Mr Hemsley said.
“There are positive signs for our economy moving forward that may see our market stabilise in the next 12 months,” Mr Hemsley said.
“The low Australian dollar is providing a boost to several sectors of the economy,” Mr Hemsley said.
The Property Market is Cyclincal
The property market works in cycles and in the medium to longer term prices will rise again. Mr Hemsley states, “Those able to jump in now are likely to enjoy the reward in a few years’ time. Particularly if you look within, or near, areas of traditionally high demand such as those well serviced by public transport or close to other amenities such as the beach, river or hospitality and entertainment precincts.”
“Low interest rates and more affordable prices mean that those looking to enter the housing market could make the most of current conditions,” Mr Hemsley said.
Perth’s recognised potential
There are many factors that can assist in stablilising the Perth property market, one of which is the comparative value that Perth offers over other Australian cities, which is the catalyst for investors to take an interest in the market.
“This notion is reinforced by the announcement of non – stop flights from London to Perth which surely underscores the importance of Perth as the western gateway to Australia and the IndianOcean Ring and reflects the long-term faith that major companies have in Perth and WA,” Mr Hemsley said.
“Perth has much to offer at a national and global scale given the range of quality infrastructure, having five excellent universities, major hospitals and going forward Perth is securing its place in the hierarchy of Australian cities and globally,” Mr Hemsley said.
“Major businesses are certainly seeing the long term prospects in Perth as international brands continue to choose Perth for their latest expansions,” Mr Hemsley said.
Booming international education opportunities for Perth Property
Lower rents have made Perth an attractive destination for International students, providing a new array of investment housing potential in the student accommodation sector.
“International education is also booming across Australia as our third biggest earner,” Mr Hemsley said. “Perth is not missing out in this area as our local universities have experienced a significant intake of international students in recent years who not only invest in education, they have day to day living expenses including accommodation.”
“International students are currently being attracted to WA in particular due to low rents, as the report shows median rents have decreased by 9.8% in 12 months,” Mr Hemsley said.
Source: Corelogic RP Data, “Quarterley Housing & Economic Review – December 2016 release” and QWest Paterson, Article: “Perth property plunge close to bottom: Hemsley: WA Business News, 13 December 2016“