Perth property market continues on road to recovery

Sales activity remained strong in Perth

Sales activity remained strong in Perth, with Reiwa’s July data showing numbers increased 68 percent compared to April across both dwelling and land sales.

President Damian Collins said while sales activity had reduced during the initial stages of the COVID-19 restrictions, it was great to see levels return to where they were before the pandemic hit.

Land sales increased 121 per cent compared to April.



“While there are no surprises with the increase in land sales for the month, it was pleasing to see that both houses (up 58 per cent) and unit sales (up 51 per cent) also saw a significant increase,” he said.

Land sales saw the greatest surge in June, with 1572 sales following the announcement of the State and Federal government’s building stimulus packages, but decreased to 609 in July with the initial purchasing frenzy easing and supply of land tightening.

Mr Collins said land was definitely being absorbed at a faster rate than it was becoming available and land listings were expected to continually decline.

Land sales were five per cent higher than the same time last year, however sales for established houses fell 14 per cent over the same period and unit sales were down 17 per cent.

According to data, Byford had a 92 per cent increase in sales activity compared to June, which was closely followed by Port Kennedy (up 88 per cent), Quinns Rocks (up 50 per cent), Heathridge (up 42 per cent) and Banksia Grove (up 38 per cent).



The number of properties for sale in Perth increased 3 percent in July.

“With the increase in sales activity, it is good to see a slight increase in the number of listings for sale, which demonstrates those who were considering selling their property are looking at the favourable market conditions and choosing to now sell,” Mr Collins said.

Listings were 25 per cent lower than July 2019.

According to data, Perth’s median house price remained stable at $475,000 over the month, but was slightly lower (2.3 per cent) than the same time last year.

Mr Collins said CoreLogic’s findings for July supported the monthly data, showing Perth house values had marginally declined 0.6 per cent during the month.

“Although Perth’s overall median house price remained stable in July, data shows one in three suburbs recorded an increase,” Mr Collins said.

“East Fremantle saw the biggest growth in median house price for the month with a 4.8 per cent increase, this was followed by Pinjarra (up 3.3 per cent), Rivervale (up 2.9 per cent), Forrestfield (2.7 per cent) and Yangebup (up 2.5 per cent).”

Leasing activity in the Perth metro area declined 9 per cent over the month, but was up 13 per cent in the three months to July.

“Although leasing volumes were down last month compared to July, tenants remain very active right now, as listings for rent have decreased 7 per cent compared to June and 48 per cent compared to July 2019,” Mr Collins said.

The top suburbs to see an increase in leasing activity growth included Leeming, Victoria Park, Stirling, St James and Halls Head.

Perth’s overall median rent price was stable in the three months to July, at $350 per week.

“In terms of houses and units, this broke down to $370 per week for houses and $340 per week for units — up $5 per week compared to June,” Mr Collins said.

“Applecross saw an 8.2 per cent increase to $595 per week, which was followed by South Perth (up 4.2 per cent), Wellard (2.9 per cent), Cloverdale (up 2.9 per cent) and Belmont (up 2.9 per cent).

Under current market conditions, with a low number of listings and a vacancy rate at about 2 per cent, there would be strong pressure on rental prices.



The emergency period tenancy legislation has negated this, preventing rent increases for existing leases, with increases only allowed for new leases.

Mr Collins said with the WA property markets returning towards normality, it was time to consider the emergency period tenancy legislation for residential and commercial properties and allow it to end at the proposed time of September 29, 2020.

“Once the moratorium on rents finishes in September, landlords will be able to increase rents if they choose to,” he said.

“We also expect that the low level of available rental stock will drive up prices, which is why it’s important to encourage investment in WA — extending the legislation will deter investors and make the situation worse.”

Despite so many people building new homes, and potentially moving out of rental accommodation, the pressure on the rental market was not expected to decrease.

Mr Collins said most people who had taken advantage of the building grants were first-home buyers, not investors, so not a lot of new stock was being added to the rental market.

“The buyers of the house-and-land packages are in some cases tenants so they will move out of rental accommodation,” he said.

“However it will be at least six months from now, and in many cases 12 months or more, before they free up the rental stock.

“It’s important to note that most of the areas where these land-and-house packages are are further away from the CBD and are in the outer suburbs.

“Renters generally want to be close to the action — public transport/CBD/cafes/shops etc.”



Perth Real Estate: Growth seen in all aspects of market


Sales activity in the Perth metropolitan region increased in July

Sales activity in the Perth metropolitan region increased in July, with REIWA data showing volumes were up 68 per cent compared to the COVID-19 low in April across both dwellings and land sales.

Land saw a 121 per cent increase in sales compared to April, while houses and units enjoyed a 58 per cent and 51 per cent uptick in sales.

Urban Development Institute of Australia (UDIA) WA also noted a massive increase in land sales on the back of state and federal government incentives, with 3322 new lots sold in the June 2020 quarter compared with 1999 in the previous quarter – a 126 per cent increase.

This is the highest number for the June quarter that UDIA WA has recorded since records began in 1990.

UDIA WA said new land prices had remained relatively steady at $226,400, with land prices having risen just 0.8 per cent over the quarter, and two per cent since the same time last year.

Listings for sale in the Perth metropolitan area experienced a small three per cent increase compared to June, according to REIWA, but this is 25 per cent lower than July 2019.

Every capital city, besides Darwin, saw a month increase in stock from June to July 2020, according to SQM Research.

“It is somewhat abnormal to record a rise in listings during the winter months. Normally, falls are recorded,” SQM Research CEO Louis Christopher said.

“This could have been generated by the lifting in restrictions over May and June, enticing sellers to the market.”

This comes off the back of the recent announcement from CoreLogic that the prices of homes nationally dropped 0.6 per cent in July, with Perth witnessing a 0.6 per cent drop for the month.

Regional Western Australia was hit harder, with a 3.2 per cent fall in value over the month.

Despite the dip, REIWA said one in three suburbs recorded an increase in prices.

East Fremantle saw the biggest growth in median house price for the month at 4.8 per cent followed by Pinjarra (3.3 per cent), Rivervale (2.9 per cent), Forrestfield (2.7 per cent) and Yangebup (2.5 per cent).

According to CoreLogic Asia Pacific Head of Research Tim Lawless, housing markets have remained relatively resilient through the COVID-19 period so far.

“The impact from COVID-19 on housing values has been orderly to-date, with CoreLogic’s national index falling only 1.6 per cent since the recent high in April and housing turnover has recovered quickly after it’s sharp fall in late March and April,” he said.

“Record low interest rates, government support and loan repayment holidays for distressed borrowers have helped to insulate the housing market from a more significant downturn.”

However, with fiscal support set to taper from October and repayment holidays expiring at the end of March next year, Mr Lawless believes the medium-term outlook remains skewed to the downside.

“Urgent sales are likely to become more common as we approach these milestones, which will test the market’s resilience,” he said. “Similarly, the recent concerns of a second wave of the virus and the potential for renewed border closures and stricter social distancing polices are likely to further push consumer sentiment down.

“This is likely to weigh on both homebuying and selling activity more broadly.”



‘Floodgates have opened’: Perth’s most elite estates get snapped up in weeks


Overseas interest in the top end of Perth is hot!

Overseas interest in the top end of Perth’s real estate market couldn’t be hotter, and it appears Western Australia’s success at managing the spread of coronavirus is proving a major drawcard.

Real estate agency William Porteous International, which specialises in multimillion-dollar western suburbs listings that attract international buyers, is seeing a sudden boom in interest after COVID-19 restrictions lifted at the end of May.

A Claremont waterfront duplex on Bindaring Parade is asking for $9 million.
A Claremont waterfront duplex on Bindaring Parade is asking for $9 million.CREDIT:DOMAIN

William Porteous said he had received calls from all over the world looking for waterfront properties in the $10-million price bracket.

“With this coronavirus there was a couple of weeks where everything went flat and then all of a sudden we started getting calls from expats living in places like Saudi Arabia, America, England, Hong Kong and China and everywhere around the world and they were all calling up saying ‘what have you got?’” he said.

“And with people not being able to travel have sort of sat down and thought, ‘gee Perth is a good place,’ and all of a sudden the floodgates have opened and people are pouring into the market.”

Mr Porteous said the agency had seen properties that were tough to shift years ago suddenly snapped up within weeks.

“We sold something in Mosman Park the other day; the house was on the market 2 ½ years ago and we couldn’t get a bite, and then we put it on the market again a couple of weeks ago and bang, it sells almost the second week,” he said.

The multi-million dollar views from Bindaring Parade duplex in Claremont.
The multi-million dollar views from Bindaring Parade duplex in Claremont.CREDIT:DOMAIN


“The buyers think it’s an opportune time to buy and they’re coming out of the woodwork, which is quite contrary to what is happening in Sydney and Melbourne.

“At the moment I am finding that I have never been busier. So we’re flat out.”

His most recent sales include a $6.1 million property in Dalkeith and a $9.250 million house in Peppermint Grove, which sold three years ago for $8.25 million.

This designer house in Dalkeith is listed with William Porteous International.
This designer house in Dalkeith is listed with William Porteous International.CREDIT:DOMAIN

“We’ve got another big one on Jutland Parade (Dalkeith), which has been on the market since October last year for $12 million and we anticipate that will be sold this week,” Mr Porteous said.

“And up in Mosman Park we have a very good block at 35 Saunders on the waterfront and they paid $10 million for it three years ago and they want to sell it and we’ve got very good offers on that. And then a couple of other properties in Mosman Park as well.”

“I have got another one in Peppermint Grove that came on the market quietly at $15 million with two good viewings there and another viewing on Wednesday.

“And we’ve got a townhouse at 108 Bindaring Parade which is a duplex half overlooking the river which is on the market for $9 million and got someone very interested in buying that, which wasn’t happening six weeks ago.”

This Peppermint Grove estate is asking for $15 million.
This Peppermint Grove estate is asking for $15 million.CREDIT:DOMAIN

Western suburbs agent Mack Hall, who also specialises in pricey properties, said while he hadn’t seen international inquiries convert to sales so far, given the state of the rest of the world they shouldn’t be holding back from Perth.

“There are lots of enquiries,” he said. “People can send messages on the website but it’s a matter of what comes of it – they should do and why wouldn’t you?

“Why would you want to stay in Hong Kong? The rest of the world is in pretty bad shape.”

Mr Hall said he has seen a steady stream of sales go through, “certainly in the quite expensive bracket between $4 to $6 million there have been a lot of buyers.”

REIWA sales data for the past six weeks show three finalised sales above $3 million.

The increased interest gives credence to Premier Mark McGowan’s messages that “Western Australia is the envy of the world” and the idea many expat citizens may be looking to return and settle in the state due to its record in dealing with the coronavirus.

While Australian citizens, including dual citizens, are not prevented from returning home, a cap of 525 overseas passengers allowed in each week has slowed the opportunities for those wishing to relocate.

An ABS report into WA’s visitor arrivals in May, which tallied the number of trips rather than people, found there were only 370 short-term visitor arrivals from the UK, New Zealand, USA, Denmark, Poland, Singapore, Croatia, Canada, Norway and India, while there were nearly 20 long-term visitor arrivals. The number of returning residents for the month was 1290.

WA is not the only sought-after destination, with Byron Bay also reporting a “tsunami” of interest from wealthy urban professionals, celebrities and expats returning from overseas.

First National Byron sales manager Tara Torkkola told Domain they had their “best quarter in 30 years”, attracting interest from “actors from LA [to] car designers from Hong Kong”.

Source: WAToday

TREND ALERT: Aspirational lifestyle interior design is in!


Following pandemic paralysis, forcing the world’s population to become short-term introverts, aspirational lifestyle interior design is now on trend, argues Deborah Heath from Design by Deborah…

Social media is full of images of how the celebrated live and play and ideas on how to create your own version of their lifestyles.

We are more likely to see where they go on holiday than in their own homes, providing the backdrop for their seemingly perfect lives. We are looking to share that experience. We all want our hotels to be more exciting, comfortable and luxurious than our own home. We want to stay somewhere special, create memories and escape our normal lives and dream.

The digital world now has another layer of influence. There are bloggers, Facebook and Instagram masters, who follow, promote and create trends quickly and easily. During this lockdown period many of your clients will have spent many hours browsing the many different ideas on offer. Everyone is looking forward to that moment when they can stay in a hotel again. So it is important to offer something exciting and so different to staying at home.

Of course we don’t all share the lifestyle to which we aspire, thank goodness. When looking at how to market a hotel the team will consider the aspirations of its clients. In essence what experience do they want. Are they looking for a gastronomic encounter, is there a significant local attraction, it may be health and beauty or perhaps enjoying nature at its best. You may have predominantly foreign clients, who are looking for the traditional British experience or may be the majority of your clients are business people. While these aren’t mutually exclusive it does give a marketing direction, which should then be reflected in the interior design.

Once there is a clear outline of the design direction for the hotel the chosen interior design partner can then develop the scheme. It is important that a hotel has an identity, this allows the client to both understand the offering and make their choice. A web site that shows a monochrome minimalist bedroom design is offering something very different to a four poster bed with embroidered silks and chandeliers. Both are aspirational experiences.

At Design by Deborah Ltd, we believe in taking the design one step further. The interior design of the hotel that they have chosen should exceed their expectations. The clients should be delighted and surprised by the interior. The lifestyle that they aspire to, they can experience whilst on holiday staying at your hotel.

Source: HotelDesigns

Perth sales hit a five-year high

The strongest month of sales since 2015

Perth is coming off its strongest month for sales since 2015, with transactions in June up 55.1% from May.

REIWA data shows that land sales in particular rose a striking 289% from the previous month, with 1,471 blocks sold.

Dwelling transactions rose 15% from May, with 3,990 properties changing hands.

While any comparative statistics at the moment can be taken with a grain of salt (such as the recent drop in real estate values across the combined capitals), it appears coronavirus hasn’t slowed the Perth buyers market, with June sales up 45% than those of 2019.

“There is a real possibility that we will run out of titled and completed blocks in the coming months.”REIWA President Damian Collins credits the recent building bonus grants for the leap.

“The large spike that we have seen in land transactions can be attributed to people fearing that they may miss out on these grants.

Overall sales listings in Perth are down 9%, while sales are rising, making this a sellers’ market.

“During the initial COVID-19 period there was some downside price risk to Perth property prices,” continues Collins, “however it now appears that Perth prices will generally hold firm and could even possibly rise.

“This is of course dependent on the economy opening up and remaining open.”


Source: EliteAgent

WA space project to drive nationwide industry growth


Investing in new space technologies

The federal government and Western Australian government will invest in new space technologies across the state to help grow a range of industries nationwide and create new jobs.

Two of the projects being supported are part of the federal government’s $19.5 million Space Infrastructure Fund and to support local jobs and research and development.

Fugro Australia Marine will receive $4.5 million from the Commonwealth to build the Australian Space Robotics, Automation, and AI Command Control Complex (RAAICC) in Perth. The facility will boost opportunities for start-ups, small businesses and researchers to control robotics activities in space, including servicing satellites in orbit.

The Pawsey Supercomputing Centre will receive $1.5 million to establish Australian Space Data Analysis Facility (ASDAF) in Perth.

Federal Minister for Industry, Science and Technology Karen Andrews said both projects highlighted the importance of developing technological capability to drive growth across various industries.

“These investments will not only strengthen our place in the global space sector – it has flow-on effects for mining, agriculture, emergency services and maritime surveillance,” she said.


Industry growth

“It’s a win-win. We’re building on the capabilities that make Australian businesses a desirable partner for space projects around the world, as well as growing the industries that we have a natural advantage in like mining and agriculture.”

Cooperation in robotics, automation and AI is a key feature of the memorandum of understanding the Australian Space Agency signed last year with the WA government, which has committed $3.5 million to the RAAICC and $750,000 to the ASADF on top of Commonwealth funding.

WA Science Minister Dave Kelly said the state government’s investment in these centres will help grow Western Australia’s space industry.

“The RAAICCC will support the WA headquartered AROSE to capitalise on the State’s world-leading remote operations for use on-Earth and to adapt it for remote operations on the Moon, Mars and beyond,” he said.

“The Space Data Analysis Facility will support business across a range of sectors to develop new products and services and help improve productivity and innovation across key WA industries.”

The Space Infrastructure Fund is among almost $700 million of federal investment in the space sector, which aims to triple the industry’s size to $12 billion and create 20,000 jobs.


Source: ManMonthly

Real estate: Perth’s most affordable suburbs to buy a home


Looking to get on the ladder?

If you’re hoping to get on the housing ladder, you don’t have to break the bank to find the perfect place to call home in Perth.

There are plenty of areas that are both accessible and affordable – and you don’t have to sacrifice amenities for a lower mortgage.

Here’s REIWA’s list of the 10 cheapest suburbs to buy in Perth.


Perth’s cheapest suburb is Armadale. You can snatch up a house in Armadale for a median house price of $200,000, which is 11.9 per cent less than if you were buying during the same time last year.

During the 12 months to April, 140 houses sold in Armadale, proving to be a popular choice among buyers.

Armadale is a well-established suburb with large growth potential and offers first home buyers and investors plenty of affordable housing stock to choose from. Armadale is located approximately 25 kilometres from Perth City.


The second cheapest suburb in Perth for houses is Camillo. Located 23 kilometres south of Perth, Camillo is an excellent option for first home buyers, being a family friendly suburb with great access to schools and public transport.

During the 12 months to April 2020, Camillo’s median house price declined 5.3 per cent to $216,000 making it a good time to buy your first home in the suburb or purchase an investment property. 47 houses also sold during that time.


Next on the list is Parmelia, with a median house price of $237,500 for the year to April 2020. Parmelia is a self-sufficient suburb, close to the thriving Kwinana hub. Parmelia experienced a one per cent decline to its median house price when compared to the same time last year.

During the 12 months to April 2020, 79 houses sold in Parmelia. Parmelia is situated 34 kilometres from Perth City and is a good option for young families looking to buy their first home with plenty of parks, schools and access to public transport.


The fourth most affordable Perth suburb by median house price is Mandurah.

For the 12 months to April 2020, Mandurah’s median house price experienced a four per cent decline, taking the figure to $240,000. Known as the heart of the Peel region, Mandurah has evolved into a thriving city and a popular tourist destination.

The coastal suburb appeals to buyers looking for a first class ‘sea change’ suburb with property development potential. During the 12 months to April, there were 83 sales in Mandurah.


Another affordable option for buyers is Orelia, with a median house price of $240,000 – an eight per cent decline when compared to the same time last year.

Orelia is located 38 kilometres south of Perth within the city of Kwinana and features all the amenities residents need. During the 12 months to April 2020, 51 houses sold in Orelia.


Another southern suburb of Perth, Coodanup’s median house price remained stable during the 12 months to April 2020, coming in at $242,500.

During that time, 46 houses sold in Coodanup, proving to be a relatively common option for buyers looking for affordability. Coodanup is located within the city of Mandurah, meaning residents can enjoy the bustling lifestyle of Mandurah while living in a smaller more relaxed suburb.


Greenfields is a relatively popular choice for young families, with 124 sales in the year to April 2020. Featuring three primary schools and two high schools as well as attractive estates and parkland, Greenfields is a common pick for first home buyers or investors.

It’s affordable median house price of $247,000 represents a 10.2 per cent decreased when compared to the same time last year. So, now’s the time to snatch up a bargain if it’s on your agenda.


Stratton experienced an 11.3 per cent decline to its median house price in the year to April 2020, making it Perth’s eight most affordable suburb for houses with a median house price of $255,000.

During that time, 26 houses sold in Stratton. Stratton is located within the City of Swan, so is a viable option if you are looking for affordability and lifestyle.


Cooloongup is a neighbouring suburb of Rockingham, meaning locals get to enjoy all of Rockingham’s amenities and features while also living in a self-sufficient suburb.

For the 12 months to April 2020, Cooloongup’s median house price comes in at $256,500. Coolongup’s median price increased 2.6 per cent when compared to the same time last year, so if you’re looking to buy in Cooloongup, hurry before prices increase further.

During the 12 months to April, 78 houses sold.

10. LEDA

Rounding out Perth’s most affordable suburbs for houses is Leda, with a median house price of $260,000 – a two per cent increase on the same time last year.

During the 12 months to April 2020, 37 houses sold in Leda, which makes up one of the five suburbs within the City of Kwinana.


Source: PerthNow

Real Estate Institute of WA research reveals drop in available rentals amid COVID-19 pandemic


A tighter market

The rental market is getting tighter, with fewer than 5000 dwellings available for lease at the moment.

Real Estate Institute of WA research shows listings fell 17 per cent in May to 4676 dwellings.

They are being quickly absorbed, according to REIWA boss Damian Collins, who said the take-up of new leases jumped 27 per cent in May compared with April.

But the laws of supply and demand have been overruled by the coronavirus response, which means prices have remained steady.

The overall median price remains $350 a week.

This is largely because it is unlawful to increase the price of existing leases until October under the Residential Tenancies COVID-19 Response Act.

Listings of homes for sale were also down in May with only 11,299 properties for sale on which is 3.3 per cent lower than April and 30 per cent lower than this time last year.


Source: PerthNow

Perth property market recovery delayed but not destroyed


Delayed but not destroyed

The state’s peak real estate and property body has added to recent commentary that COVID-19 has delayed but not destroyed the long-awaited recovery of Perth’s property market.

But in the same breath the Real Estate Institute of WA warned the recovery would need significant support, sustaining calls to reform the stamp duty tax and remove or soften this costly barrier to homebuyers.

REIWA announced on Tuesday that residential listings for sale and rent in WA on its site were the lowest they had been in six years with available stock dropping, not rising, during the COVID-19 restriction period.

There are almost 30 per cent fewer properties currently for sale than there were at this time last year and the same goes for rentals, with the vacancy rate at only 2.4 per cent.

The average discount accepted by sellers has reduced to seven per cent, 0.5 per cent lower than May last year.

REIWA president Damian Collins said due to the lower than normal stock levels and reduction of discounting, there should not be any major downward price pressure and it was likely the current median price of $477,000 would remain relatively stable over coming months.

The state’s economy was bouncing back much quicker than many experts thought and it was unlikely the property market recovery would be reversed.

“While it’s still not a great market it’s now almost normal in terms of volume, every day the volume of rental stock is dropping … quite significantly,” Mr Collins said.

“Going into COVID-19 there were still some downturn risks but those have really dissipated, and barring a second wave I am struggling to see any risk of downward pressure.”

Mr Collins sustained calls for the state to ensure continued recovery through reforming stamp duty, which could add tens of thousands to the cost of a new house.

A major government revenue stream when the market is healthy, stamp duty is nevertheless seen as an inefficient revenue-raiser, because in difficult times that revenue drops while the barrier it represents to homebuyers stays high.

Long-term replacement of stamp duty with broad-based land taxes phased in over a period of years has started in the Australian Capital Territory and is being discussed in Victoria and New South Wales.

Recently Opposition Leader Liza Harvey released a six-month plan to kickstart WA’s economy, including a 75 per cent cut in stamp duty for house and land packages, and urged the government to keep significant permanent reform on the table.

But Premier Mark McGowan ruled it out and said replacing stamp duty with a rate on every household would not help the economy.

Mr Collins said the amount per property would in fact need to be less than $1000 to make the same amount of revenue, and Mr McGowan’s response did not take into account the possibilities of a long-term, phased approach to a broad-based land tax that made use of exemptions and options such as allowing people to choose whether they paid a lump sum or annual amount.

He said there was pressure on both sides of politics to come up with alternatives for what “every side agress is not a good tax”.

“It penalises people who move, it’s got nothing to do with wealth or income … even Victoria and New South Wales are saying they want to get rid of it so there are opportunities there for WA politicians to take a brave stance, this is the time,” he said.

Mr Collins’ comments followed prominent Perth developer Paul Blackburne saying WA’s market recovery might be delayed a few months but, he believed, would recommence by spring and would not mirror the pain the eastern states faced.

And on Friday, WA’s biggest apartment developer Finbar’s managing director Darren Pateman also said there could be reasonable confidence that WA stood to recover quicker from the COVID-19 crisis than other states.

Mr Pateman called on the government to extend a rebate beyond off-the-plan sales to projects under construction and new completed stock, to encourage commencements and allow capital to be redirected to new projects.

The Urban Development Institute of Australia WA also on Friday called for long and short-term reforms to the tax in the wake of glum new housing commencement forecasts.

Property tipped to hold up against virus strain

House prices predicted to remain stable over the medium term

The COVID-19 pandemic is unlikely to cause a significant drop in Perth house values over the medium term, according to insight from a national property investment association.

Property Investment Professionals of Australia (PIPA) said compared to other mass economic hits, the property market would likely be shielded by low interest rates, inflation, the ability to defer mortgage repayments and previously strong conditions.

“Whenever there is a global financial shock, some commentators predict huge property price falls, which ultimately don’t happen,” PIPA Chairman Peter Koulizos said.

Previous predictions

“During the global financial crisis, prices were forecast to fall by 30 per cent, but in many locations they held their ground and even strengthened over the months and years afterwards.

“While the coronavirus situation is somewhat different, given it’s a temporary public health emergency, I believe property prices may temporarily soften by five to 10 per cent at most but rebound relatively quickly.”

Frasers Property Australia Residential General Manager Tod O’Dwyer agreed financial relief was playing a big role in keeping Australian property afloat, as well as the industry adapting quickly to the situation by introducing virtual tours, online inspections, video links and electronic sales contracts.

“It’s an encouraging sign that we are still seeing sales activity in the local market, as evidenced by the recent rebound in the number of sales across Perth for existing properties,” he said.

“The strong initial response to our new East Green community in Greenwood is a good indicator of buyer demand for well-located property.

“Given the COVID-19 environment, we were curious to see what the market response would be and we have been pleasantly surprised.

“We’ve had more than 100 expressions of interest in the past month for property in this new community, which we expect will become available for purchase in the second half of this year.

“The financial institutions have made some significant steps towards reducing the cost of borrowing, so for those people whom job security is not a consideration, the current market may represent a strong buying opportunity.

“If this competition within the lending industry stays in place for some time, it will bode well to support a steady recovery post COVID-19.”

Mr O’Dwyer predicted Perth’s market would stabilise towards the end of the year, but he said market recovery would depend on some major influences, such as the return of interstate and international immigration, population growth and international education.

Source: TheWest