Established suburbs experience growth

 

The rising demand is prompting price growth

A combination of tightening sales stock and rising demand is prompting price growth across a number of Perth suburbs as buyer competition heats up, according to Western Australia-based property investment consultancy Momentum Wealth.

Momentum Wealth Residential Investment Committee Chair Emma Everett said the growth was wide-ranging in established suburbs.

“Although there are some outer areas that continue to struggle with oversupply, we’ve seen a significant tightening of stock for sale across the vast majority of established suburbs in Perth, with low building approvals over recent years combined with few upcoming land releases further limiting the supply of oncoming stock in these areas,” she said.

REIWA data showed there were 10,693 properties listed for sale across Perth in the week ending September 27 – a decline of 22.23 per cent from the same week in 2019.

“At the same time, Perth has recorded a sustained increase in buyer activity in the months following the easing of COVID-19 restrictions, with sales activity trending 40 per cent higher in August compared to the same period in 2019, which is putting further downwards pressure on stock levels,” Ms Everett said.

“These conditions are translating into an increasingly competitive market as buyers in high-demand areas compete for a reducing pool of properties, with our buyer’s agents regularly noting higher attendance at home opens and multiple offers from buyers for high-quality stock in our preferred suburbs.”

While yet to flow through into headline price growth, these conditions combined with suburb-specific demand and supply factors have already translated into improvements across a number of areas, with REIWA reporting that 45 per cent of Perth suburbs experienced increases in median sales price across August.

Ms Everett said this had been particularly the case in suburbs where tightening stock levels and limited oncoming supply had been accompanied by strong demand signals from buyers in the form of high online property views.

She also said houses had been particularly more appealing to buyers than apartments.

“Houses are always resilient in the Perth market, but particularly this year,” Ms Everett said. “With people spending more time at home, perhaps there is a trend towards valuing that space even more.”

While the average days on market for properties in the Greater Perth region was 50 days in the three months to June 2020, this was significantly lower in areas such as Kingsley, Beldon and Mount Hawthorn, where high online property views and limited stock led to days on market of 20, 20, and 24 respectively across the same period.

These suburbs were amongst a number of areas to outperform the broader market in the year to June 2020, recording price growth of 6.3 per cent, four per cent and 6.3 per cent respectively, where prices in Greater Perth declined 3.1 per cent across the same period.

Ms Everett said while primarily owner-occupier driven, and despite the extension of the emergency period in WA, savvy investors were already turning their attention to Perth as conditions ripened.

“As it stands, these improvements are primarily being driven by owner-occupiers and first homebuyers, however, we are starting to see interest from investors who recognise conditions are ripening and the market is already moving, and we expect it’s only a matter of time until others follow suit, particularly once we see broader rental growth” she said.

Momentum Wealth Property Management Team Leader Amanda Kroczek said while the extension of the emergency period meant rent increases remained prohibited for existing tenancies, rents were already rising for new tenancies.

“With rental vacancy rates reaching a 12-year low in Perth and rental stock continuing to tighten, our property managers have seen a significant rise in tenant competition on the ground, which in many cases is resulting in rent increases for advertised properties, as tenants are offering more to secure their property of choice,” she said.

Ms Everett said when combined with the relative affordability of Perth, these conditions presented excellent opportunities for investors in a position to enter the market.

“Perth’s relative affordability, improving rental conditions and early growth indicators are providing ideal conditions for investors with the right property selection criteria to enter the market at a reasonable price point and at a strong yield while positioning themselves to leverage future market improvements,” she said.

REIWA President Damian Collins said the extension of the emergency period meant investors were shying away.

“In a time when we need more investors entering the market to help build up rental stock supply, we are putting up barriers to not only prevent new investors, but also not helping those currently providing a basic human need – housing for all Western Australians,” he said.

Ms Everett said it could take a while for casual investors to catch wind of the change in conditions.

“Sometimes this news takes time to travel,” she said. “So while we are seeing the tighter rental market and properties selling more quickly, unless you are active in the market, it can take a while to show up in the statistics.

“Often by the time it shows up, that activity has been heating up for six to 12 months. It can take investors, particularly if they are not based in Perth, time to understand those market conditions.”

Source: thewest.com.au

Australia on the cusp of a national real estate boom: Hotspotting’s Terry Ryder

 

EXPERT OBSERVER

Australian is on the cusp of a national real estate boom. And I do emphasise “national”.

We haven’t had a genuine national real estate boom in Australia since the one from 2001 to 2004, when all the major markets experienced strong price rises.

The one that drove Sydney and Melbourne prices higher from 2013 to 2017 was not a nationwide phenomena, as few other locations around the nation shared that price uplift.

But right now forces are building which will generate growth in most major cities and towns across the nation. They will be boosted by new events which will energise economies, including infrastructure spending and increased activity in the resources sector.

We currently have a remarkably strong situation with markets across Australia – everywhere, in fact, except the two biggest cities, which are so often the exception rather than the rule.

The new price data from CoreLogic suggests that all capital cities except Sydney and Melbourne had price growth in September, while most regional market jurisdictions also recorded growth. The September figures continued the stubborn performance of markets since February when the pandemic first started to impact Australia.

Many of our capital cities have recorded some level of house price growth in most months since February. Canberra has had growth in each of the past seven months and Adelaide has had uplift in six of the seven months.

Regional markets around Australia are pumping strongly, with vacancies ultra low, rents rising and buyers outnumbering sellers. People at the coal-face of these markets, including buyers agents, valuers and selling agents, have been reporting very competitive markets for several months – and the data supports those views.

So I would argue that significant sections of the nation already have notable up-cycles under way, particularly those where the virus has been got under control early, local economies are strong, consumer confidence is good, vacancies are low, first-home buyers are active and the Exodus to Affordable Lifestyle is having an impact.

Some locations have most or all of those factors in play. Those places include Perth, Adelaide, Hobart, Canberra and regional centres like Ballarat, Bendigo, Albury-Wodonga, Orange, Newcastle, the Sunshine Coast, Mackay, Rockhampton and Townsville.

Of the 15 major market jurisdictions in Australia – eight capital cities and seven state/territory regional markets – 11 have house prices higher than at the start of 2020, led by Regional Tasmania (up 7.1%) and Darwin (up 6.6%), as well as Hobart, Canberra, Regional NSW and Regional South Australia (all up 4-5% since the start of the year).

Twelve of the 15 jurisdictions have house prices higher than a year ago. For apartments, 11 of the 15 locations have prices higher than a year ago.

This means there is a groundswell of positive factors, a rising tide of markets – particularly outside the two biggest cities, which is where two-thirds of Australians live.

Against that background, there are positive forces building which will turbocharge the situation and create a national property boom.

We have seen that local economies and property markets have charged out of lockdown phases with considerable exuberance. We can also get a message from New Zealand, where the economy has continued to emit positive signals and property prices have been rising strongly right across that country.

The more our local economies return to normal, with Melbourne recovering and state border restrictions easing, the more we will see improved confidence and rising market activity.

But the big looming factor is the upcoming infrastructure spend – and, partly as a by-product, considerable uplift in the resources sector.

It is clear that federal and state governments intend to generate an infrastructure-led economic recovery and are willing to go deep into budget deficit to achieve it.

Few things supercharge economies and real estate markets like big infrastructure projects, be they motorways, rail links, hospitals or energy facilities.

Infrastructure developments create economic activity and jobs – and the energises property markets. These projects also improve the amenity of the locations that are directly impacted by the new projects.

A by-product of the infrastructure-inspired recovery will be a new resources boom, with that sector already busy servicing overseas demand.

Another big factor which will drive prices higher is the extraordinary shortage of real estate in most locations in Australia. Vacancy rates of 1% and lower are the norm now and it’s putting upward pressure on rents. Developers have been building less in the past 2-3 years and investors have been largely on the sidelines for the past 18 months in particular. The rental stock the market needs has not been created at the required levels.

At the same time, vendors have been reticent – which means that buyers outnumber sellers in many locations.

Recently we have seen economists from the major banks and other institutions recanting their March-April forecasts of real estate prices dropping 10%, 20% or 30% – and are now suggesting much more moderate outcomes. Westpac is now predicting boom-level price growth starting in mid-2021.

While they and others are becoming increasingly bullish for their predictions, they’re still getting it wrong. Prices may be nudging downwards, generally speaking, in Melbourne and Sydney but they are rising in most other places. And the big uplift will come much sooner than the economists expect.

We’re starting to see media reacting to the change in sentiment, although well behind the game as usual. Here are some of the headlines from the past week:

  • Top End of housing market will lead recovery – The Australian
  • Housing bears face extinction as forecasts turn bullish – Financial Review
  • Regional house price rises on the way – Financial Review
  • House prices bounce in September – ABC News
  • Houses emerge stronger over September as Sydney and Melbourne declines soften: Property Observer
  • Are we nearing another property boom? – Smart Property Investor
  • Victoria set for big summer of sales post-lockdown – Australian Property Investor
  • Huge sign the property market is heading up again – Yahoo Finance

This is significant because mainstream media is reluctant to present positive scenarios about the housing market.

I note also that Simon Pressley of Propertyology – who I think is the best real estate research analyst in Australia – is also predicting a property boom.

He writes in a report published last week: “Make no mistake, property markets in large parts of Australia will be booming by summer! Several locations in different parts of the country have already produced double-digit capital growth over the first 9-months of this calendar year and there are umpteen others with fast growing momentum.

“Anecdotal evidence from research conducted by Propertyology suggests that property markets are already booming in locations such as Noosa, Canberra, Orange, Dubbo, Burnie, Bendigo, Mildura, Mount Gambier, Coffs Harbour and Karratha. That’s ten towns in seven states and territories.

The cast of thousands who, during the March-April national lockdown, were forecasting a real estate Armageddon score an epic ‘Fail’.”

TERRY RYDER is the founder of hotspotting.com.au
ryder@hotspotting.com.au
twitter.com/hotspotting

 

 

Source: propertyobserver.com.au

Perth property: Good news for investors

 

Perth’s rental market has well and truly bounced back

Perth’s rental market has well and truly bounced back post-COVID-19, with some of the lowest vacancy rates we’ve seen in years.

Last month, REIWA reported that the Perth rental market’s vacancy rate had dropped to a 12-year low of 1.6 per cent – the lowest since March 2008.

A month on, Perth’s vacancy rate has lowered yet again, dropping a further 0.3 per cent.

To put this in perspective, a vacancy rate of about three per cent is what’s generally considered a healthy balance between supply and demand.

Which explains why rental properties placed on the Perth market are currently being snapped up at breakneck speed – that is, the quickest time to lease since the construction phase of the last mining boom in February 2015.

While this is all great news for investors who have been cautiously eyeing the market, it’s otherwise sobering – Perth is experiencing a serious rental stock shortage.

Thankfully, the solution is simple – the return of investors to the market.

As the lifeblood of the profitability and health of the Western Australian property sector, the state is in urgent need of investors to ensure the wellbeing of the sector going forward.

With vacancy rates so low, strong investor demand would normally be a given at a time like this. However, thanks to capital growth expectations being dampened during the long property downturn, we are still waiting on significant numbers of investors to return to the property market.

WA’s Residential Tenancies (COVID-19 Response) Act is also serving as a powerful disincentive. Why would an investor choose to return to the market at a time when their ability to price rents at market value and evict problematic tenants is constrained?

The recent extension of these emergency tenancy laws by the State Government continues to undermine investment confidence at the very time the state needs to get investors back buying and providing housing for tenants.

In the words of REIWA President Damian Collins, “in a time when we need more investors entering the market to help build up rental stock supply, we are putting up barriers to not only prevent new investors, but also not helping those currently providing a basic human need – housing for all Western Australians”.

Property is Australia’s biggest employer, contributing more than 13 per cent of gross domestic product and employing 1.4 million people. With the right policy settings and market incentives, it can and will be a massive source of economic recovery at a time when it is desperately needed, but not without investors.

Now is definitely the right time to invest, not only to avoid the rental shortage becoming a rental crisis, but also to make the most of the lowest vacancy rates Perth has seen in 12 years and continued subdued pricing levels.

What WA needs now is investors to get off the sidelines and back into the market – long-sighted investors who can overlook the waning short-term COVID-19 complications will benefit both in the short and long term.

Source: TheWest

Perth property market ‘primed for retrieval’

Perth stands out as a marketplace”primed for healing”

Perth stands out as a marketplace”primed for healing”, together with much more listings, more earnings as well as some cost development, according to CoreLogic mind of study Eliza Owen.

While action is slowly advancing across the nation, to get the four months ending September 20, Perth and regional WA would be the sole dwelling markets in which fresh listings volumes surpassed the amounts from the equal four-week interval in 2019.

 

Perth was next only to Sydney to the amount of listings to arrive at the marketplace in the coverage interval, with 286 into the NSW capital’s 382.

An increase in listings wasn’t the sole data indicating a rise in the Perth real estate industry.

At contrast of sales amounts at the six weeks to March 2020 along with also the six weeks to August 2020, Perth was not the sole capital city in which sale amounts were over the pre-COVID average.

These high rates of action were also showing in moderate value gains throughout the Perth marketplace; at the 28 times to September 23, CoreLogic’s Perth housing worth index climbed 0.6 percent.

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Camera IconPerth has been the only capital city to capture sales amounts over the pre-COVID average. Charge: CoreLogic

Ms Owen stated, though a positive twist in Perth dwellings might be sudden during a downturn, the WA market was encouraged by a 4.8 percent growth in mining investment within the entire year.

 

“ABS citizenship statistics indicates as the beginning of the pandemic, taxpayers projects across WA dropped less than 1 percent, in comparison with federal declines of 4.5 percent,” she explained.

“Perth home values can also be comparatively cheap, sitting 22.2 percent under the record residence worth in June 2014, and there’s a strong mixture of State and Federal first home buyer gains set up, which might be encouraging requirement also.”

Ms Owen stated a constant upswing at Perth property values would be based on the durability of this marketplace through the conclusion of mortgage repayment deferrals, if there were additional reductions in the money rate, and just how ardently COVID-19 might be included.

 

Source: TheNewsPocket

Subiaco to welcome a new Vibe from October

Vibe Hotels is going west this October

Vibe Hotels is going west this October with the opening of a new location in Subiaco.

Developed through Dradgin and managed by TFE Hotels, the 168-room hotel sits in the heart of Perth’s inner west as part of a mixed-use precinct.

The venue is the latest step in TFE’s startegy to have a next generation Vibe Hotel operational in every Australian capital city by the end of 2022.

At a glance: 

  • TFE Hotels has announced that Vibe Hotel Subiaco will open its doors from October 1.
  • Developed through Dradgin, the venue is the lifestyle brand’s first foray into the WA market.
  • The 168-room hotel boasts a pool, gym, conference space, guest rooms that can transform into three-bedroom suites, and a St Marks Road Co. eatery on the ground floor.

Source: TFE Hotels 

CEO Antony Ritch said Vibe Hotel Subiaco offered the chance to experience a different side to Perth in a vibrant and eclectic suburb on the city fringe.

“There’s been quite a lot of development in Perth CBD in recent years in the upper upscale accommodation category, but Vibe Hotel Subiaco will be the first brand-new build Australian lifestyle hotel, and the very first of our Next Generation Vibe properties in Western Australia,” he said.

“Local experiences – from a night out at the iconic Regal Theatre to the bustle of the weekend farmer’s markets to feeding swans in nearby parklands – will be bolstered by the hotel’s facilities.

The view of Perth from Vibe Hotel Subiaco. Source: TFE Hotels

“We’ll have rooftop pool for sun seekers and, for those that love al fresco dining, the rooftop Storehouse Restaurant and Bar, will offer incredible views over Perth.“

“The Perth CBD, cycle paths and tourist attractions are also within easy striking distance.”

The new Vibe boasts a pool, gym, conference space, guest rooms that can transform into three-bedroom suites, and a St Marks Road Co. eatery on the ground floor.

Dradgin’s Investment Manager, Lynn Liang, said the opening of the hotel on October 1 would bring long awaited quality hotel accommodation to Perth’s western suburbs, as well as vitality and amenity to Subiaco.

“Located at the corner of Railway Road and Alvan Street, the 12 storey Vibe Hotel is the tallest of the three buildings in the precinct and offers panoramic views in all directions,” she said.

Source: TFE Hotels

“The precinct is also home to over 24,000m2 of commercial office, retail and cinema tenancies.”

Ritch said TFE Hotels’ partnership with Dradgin showed TFE Hotels had a long-term commitment to tourism in the west.

“At TFE Hotels we have every confidence in the strength of the West Australian tourism market, and its ability to bounce back post pandemic,” he said.

“We are looking forward a long and fruitful relationship with our Vibe Hotels in WA.”

Vibe Hotel Subiaco officially opens for sale from today  for stays from 1 October.

Source: TheHotelConversation

Hundreds of blocks sold every week: Surge spurs $30m boost to WA building bonus

 

West Australian land sales surge

Government building bonus grants have seen West Australian land sales surge from about 60 blocks per week to 500.

Master Builders WA boss John Gelavis said in March his members were reporting a 40 per cent decline in work but since the bonus became available they had seen land and house sales triple.

“It has really turbocharged the industry,” he said.

Mr Gelavis said he had asked for the bonus to be extended further so the industry had more time to handle the work, which would need to be completed without the help of interstate workers.

West Australians who build a new home can access $20,000 from the state government on top of $25,000 on the table as part of the Commonwealth’s HomeBuilder scheme.

Source: WAToday

Real estate: Perth remains Australia’s most affordable capital city

Perth has regained its title of Australia’s most affordable capital city

Perth has regained its title of Australia’s most affordable capital city, according to new data from the HIA.

Affordability increased 7.1 per cent increase in the June quarter 2020 and is nearly double the 20-year average.

The HIA Affordability Report said Perth was especially impressive this quarter, given how much more affordable housing had already become following the mining and resources downturn.

“Perth had the fastest growing earnings in the country in the last quarter, increasing by 2.9 per cent, and the biggest fall in dwelling prices (-1.5 per cent),” the report said.

“The western capital has now reclaimed top spot over Darwin as the most affordable capital city in the country.”

Skyline of Perth seen from John Forrest National Park in Australia

Perth’s affordability index rose to 137.5, meaning only 0.7 incomes were required to service a mortgage, compared to the 2.2 incomes required in 2006.

A typical monthly mortgage payment has fallen to $1861, with repayments 21.8 per cent of earnings on average.

Affordability in regional WA improved by 7.4 per cent with dwelling prices declining by 1.6 per cent.

Regional WA required only 0.6 incomes to service a mortgage making it the most affordable region in the country.

Housing affordability improved across all capital cities in the June quarter and was at its most affordable nationally since 1999.

Housing affordability June quarter 2020
Housing affordability June quarter 2020 Credit: Housing Industry Association

Melbourne was a close second behind Perth (improving 6.9 per cent), followed by Sydney (6.1 per cent), Brisbane (5 per cent), Canberra (3.3 per cent), Hobart (3.1 per cent), Adelaide (3.1 per cent) and Darwin (1.6 per cent).

The index for regional Australia also increased by 4.9 per cent.

HIA chief economist Tim Reardon said the combination of lower interest rates, slow house price growth and relatively steady wage growth over the past three years had driven the improvement in affordability, but this was cold comfort for many first-home buyers.

“The challenge facing first-home buyers is no longer their ability to repay a loan, but in obtaining a mortgage in the first place,” he said.

“A raft of restrictions imposed by APRA and ASIC since the 2007 Global Financial Crisis has seen the number of home loans issued with a 10 per cent deposit fall from 21 per cent of all loans to just 7 per cent.

“The additional red tape imposed in recent years means that banks are increasingly lending to those that already own a home.”

Source: PerthNow

Perth: The capital city predicted to become the next property hotspot

Experts and property economists have lauded Perth as Australia’s next property hotspot

Experts and property economists have lauded Perth as Australia’s next property hotspot after spending years in the doldrums following the decline of the mining boom.

Western Australia has been named Australia’s most affordable state to live in by the Real Estate Institute of Australia for eleven consecutive quarters, and the Perth property market is seeing its highest number of property sales in five years.

According to Hotspotting.com.au managing director Terry Ryder, Perth has become one of the “busiest markets in Australia” thanks to the containment of Covid-19, the activity of first-home buyers, government support, low interest rates and low vacancy rates.

“The Perth market has shown greater resistance to the pandemic impact than most Australian markets in terms of sales activity. Its market is now pumping strongly,” said Ryder.

The prices of homes in Perth began rising in June, said Realestate.com.au chief economist Nerida Conisbee.

“The increase was microscopic and unit prices dragged down the overall numbers; however, all signs are now pointing to very good things for Perth,” she said.

According to Conisbee, three regions in Western Australia more broadly are seeing strong price growth: Karratha, Collie and Port Hedland; Capel, Harvey and Darnadup in WA’s south-west; and the Margaret River.

Perth’s economy overall is more coronavirus-proof than other capital cities, with mining still a major driver of the local economy.

And the prices of iron ore and gold, another one of WA’s major commodities, have surged, she added.

“At the same time, WA has managed to escape high rates of infection and people are working relatively normally again. From an economic perspective, it looks pretty good for the state.”

CoreLogic data released yesterday revealed that there was no change to Perth’s property prices in the month of August, while Sydney, Melbourne and Brisbane prices fell.

Expert names top 5 Perth property hotspots

Looking at metropolitan Perth, Ryder pinpointed five suburbs set for property price growth: Stirling, Joondaloop, Rockingham City, Kwinana, and Wanneroo.

Stirling’s economy and property market is on the rise thanks to several major infrastructure projects, including a $1.6 billion upgrade to two of the suburb’s major shopping centres.

The lifestyle offered by the city’s cafe and bar culture and proximity to Scarborough Beach has attracted younger residents and first-home buyers to the area, pushing up sales activity and house prices.

Joondaloop has seen a rise in buyer demand, helped by a major retail/waterfront projects and the Boas Place project which involves retail, office, hotel and residential elements.

“Joondalup is an area with strong amenities, services and good road/rail links to the CBD,” Ryder said.

“Joondalup offers a pleasant waterside environment (Lake Joondalup) while being within easy reach of the ocean and beaches. For property investors, it has the important quality of major education and medical facilities, which provide a steady pool of rental demand.”

Rockingham City offers a seaside lifestyle and access to job hubs, and has been described as a community for young families with first-home buyers particularly attracted to this area.

Residential construction, driven by strong population growth, are expected to continue for another 20 years, said Ryder. The area also has some of Perth’s lowest vacancy rates.

The Kwinana precinct is a beneficiary of a number of State and Federal Government grants, and is an affordable area with good yields, low vacancies and solid population growth.

“This is the cheapest precinct in the Perth metro area, with several suburbs having median house prices in the $200,000s (and one is below $200,000),” said Ryder.

Kwinana, which is part of the Western Trade Coast industrial area which hires 11,000, also has links to key job hubs, trains to the city, is in close proximity to beaches and is nearby green spaces such as The Spectacles Wetlands.

Wanneroo has a plentiful supply of vacant residential land ready for development yet low vacancy rates.

“Over the past decade, 177,000 new residents have moved to this municipality, making it the fastest-growing local government area in Western Australia. There’s little sign of a slowdown in the growth of this region,” said Ryder.

“Growing industrial areas are providing employment opportunities and with houses in most suburbs priced in the $300,000s and $400,000s, properties in the city of Wanneroo are worthy of attention by both home buyers and investors.”

 

Source: Yahoo Finance

Perth property: Get ahead of the game

 

It is always difficult to know whether now is the right time to sell

It is always difficult to know whether now is the right time to sell, only hindsight will let you know if you made the right choice. However, if you are currently weighing up if now is a good time to sell, there are a few fundamentals you need to make sure your property hits the ground running.

Ray White City Residential Perth Selling Principal Brent Compton said if you were not embracing the technology that made selling houses during the lockdown in Western Australia possible, you were starting off on the wrong foot immediately.

“Doing good videos – not slideshows – has really helped. A decent video with virtual reality, plus a floor plan and some decent photos – if a seller has these, anyone that looks at the property in person is semi-sold because they have seen so much that they feel comfortable enough to come and look,” he said.

“Properties that don’t have these can sometimes attract people who can be disappointed, and worse, it doesn’t attract the good buyers because they were swept up in someone else’s marketing versus one which didn’t have good marketing.”

Mr Compton said his office was witnessing an increase in overseas and interstate buyers and not having videos and virtual reality tours could lock you out of this market.

“For an owner not to put these things on the internet, they are limiting their chances of getting a premium buyer from overseas or interstate,” he said.

“I have sold a property before COVID-19 using virtual reality.

“The property in City Beach sold $70,000 above list price, and the two people competing on it, one lived in Japan and Hong Kong, while the other was in New York. They bid against each other to buy the property without physically being there.”

According to Mr Compton, the video and virtual tours all link in to the same defining principle – presentation.

“Properties that are presented to the best possible level they can be is critical, so the presentation has to be correct,” he said. “I recommend to the seller to improve the marketing, to clean, paint, and touch up this and that, and remove some of the impediments from the property that had been affecting buyers.”

Mr Compton said the market was pretty even between it being advantageous for sellers and buyers, but sellers might be able to get some extra coin because of low stock levels.

“Right now, there is less stock on the market than there was this time last year,” he said. “For people worried about not getting their price, the fundamentals of supply and demand are in their favour at the moment.

“More buyers and less properties – it is a better marketplace than this time last year.”

Mr Compton said while he was positive and confident of a strong real estate market going forward, another advantage of selling now would be that the future was not certain.

Source: TheWest

Buyers flock to Perth’s affordable suburbs

Perth’s most affordable suburbs reported increased activity

Some of Perth’s most affordable suburbs reported increased activity amongst first-home buyers over the month of July, according to the latest report from the Real Estate Institute of Western Australia (REIWA).

Eight of the 10 suburbs with median prices lower Perth’s current median of $475,000 recorded spikes in demand over the month, with Byford leading the pack with a 92% gain in sales activity. The suburb has a median dwelling value of $380,000.

The table below shows the suburbs, their median dwelling values, and the sales growth they recorded for the month:

Eight of the 10 most affordable suburbs in Perth recorded an increase in demand, particularly from first-home buyers.

Eight of the 10 most affordable suburbs in Perth recorded an increase in demand, particularly from first-home buyers.

Damian Collins, president of REIWA, said the growth in sales activity shows that the established real estate market is still performing well despite the significant increase in land sales due to the recently-announced government grants.

“In addition, the increase in activity at lower price points, demonstrates more activity by first-home buyers, due to there being no stamp duty payable on the purchase of an established home under $430,000,” he said.

Collins said despite the impacts of the COVID-19 on the economy and the housing market, first-home buyers remained active. In fact, figures from the Australia Bureau of Statistics show that there was a 2.6% increase in the number of loans to first-home buyers in June 2020.

“Following on from the effects we are seeing with COVID-19 and the increase in activity recently, it will be interesting to see if this number continues to grow over the coming months,” he said.

Source:YourMortgage