Market Predictions for Western Australia 2013

The WA property market will be characterised by a number of elements but mainly by skyrocketing rentals and a short supply of stock for sale. The positive signs however are all there including a strong economy, low interest rates and realistic sellers meeting the market
with realistic prices. This all enables investors to capitalise on the conditions at hand as rentals rise with a vacancy rate hovering around 1.9% and property prices starting to go up. This is all driven by supply and demand.
Perth itself is starting to come of age with a significant change to its landscape. The planning of the new urban CBD through the Metropolitan Planning Authority will see a dramatic transition with the development of the Elizabeth Quay project, the East Perth redevelopment and the new Northbridge link are all signs that Perth is finally serious about attracting people back to the city.
Residential Property in Perth had a surge for the December Quarter being the strongest of the year in both turnover and growth also the number of selling days on market drop from 71 to 62 days as an average. At the professionals we have over 60 offices which operate in completely different environments. What we are seeing now is the second tier of purchases who are upgrading to the next level while prices are realistic. These range from 400k-650k. We must also remember that 1st home buyers still account for approximately 30% of the market.
In summary supply and demand is the driving factor for Western Australia real estate. The State Government will need to address the massive shortage of land developments in this state and banks will need to get right behind the developers to enable this state to grow.
With 1,500 visitors a week puts all CBD Hotels under pressure leaving a massive shortage for both short and long stay visitation.
All in all I’m positive about the prospects of both state and regional Real Estate in WA and believe we will outperform the rest of Australia in 2013.
Media Contacts
David Hobbs
Chief Executive Officer
Ph: (08) 9370 4440
Mb: 0417 707 768