13/12/2016 - 15:16

Perth property plunge close to bottom: Hemsley

13/12/2016 - 15:16

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New data out today confirms Perth’s residential property market has yet to show signs of a turnaround, but one industry figure says the sector is close to the bottom of the cycle.

Perth property plunge close to bottom: Hemsley
QWest Paterson chairman Warwick Hemsley.

New data out today confirms Perth’s residential property market has yet to show signs of a turnaround, but one industry figure says the sector is close to the bottom of the cycle.

Figures released today by CoreLogic RP Data showed Perth home values have fallen 3.7 per cent over the past 12 months, and are now 9.7 per cent below the capital’s end-of-month peak in December 2014.

The figures are backed by CoreLogic’s latest monthly data, released earlier this month, which put Perth’s median dwelling price at $490,000.

But QWest Paterson chairman Warwick Hemsley says there are positive economic signs that may provide a boost to the Perth housing market next year.

“While (the latest 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.

“The low Australian dollar is providing a boost to several sectors of the economy.

“Our exports are benefiting from a more competitive market, while the local tourism industry also benefits as international travellers look to Australia for a cheaper holiday and locals choose to remain at home rather than go abroad.

“International education is also booming across Australia as our third biggest earner.

“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.”

Mr Hemsley said international students were being attracted to WA in particular due to low rents, as the CoreLogic report showed median rents have decreased by 9.8 per cent in 12 months.

“In terms of the current property market conditions, as with any downturn, this does provide an opportunity for those with a secure income,” he said.

“Low interest rates and more affordable prices mean that those looking to enter the housing market could make the most of current conditions.

“The property market is cyclical by nature and in the medium to longer term, prices will rise again and those able to jump in now are likely to enjoy the reward in a few years’ time.

 “Overall, there are a range of factors that can assist the market to stabilise, including the comparative value that Perth offers over other Australian cities which is a catalyst for investors to take an interest in the market.” 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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