RECOVERY IN WA PROPERTY MARKET CONFIRMED BY PROFESSIONALS REAL ESTATE GROUP
The latest figures from REIWA indicating a recovery in the WA real estate market has been further underpinned by Professionals Real Estate Group which has over 50 offices located throughout Western Australia.
REIWA figures show that there was a 20% jump in property sales over the last year and the median price of a Perth home rose by $15,000 to $480,000.
Commenting on the figures, David Hobbs, CEO of Professionals Real Estate Group, said that Professionals had also recorded an improvement in sales activity amongst member offices throughout the State during recent months.
“Some of our offices are now writing record figures especially in the sub $500,000 price range.
“In addition, our offices have recorded a gradual decline in the number of properties listed for during the first half of 2012 with listings are now at their lowest level in more than two years. A decline in the number of properties listed for sale is generally a forward indicator of an improvement in the property market.
“Over the coming twelve months, Professionals expects listings to decline even further due to the expectation that interest rates will continue to fall making it even more affordable to purchase a home.
“Driving this improvement in the local property market is the underlying pent up demand for properties in Western Australia due to a lack of new home construction combined with our surging population.
“This pent up demand is already being manifested in plummeting vacancy rates and surging weekly rents and it is only a question of time before the full impact of this undersupply is felt in the established housing market through higher property prices,” he said.
Mr Hobbs added that the coming months would be the last window of opportunity for first home buyers to purchase a competitively priced established home before the supply of properties for sale further declined even further and there was an upward pressure on property prices.
He offered first home buyers the following tips when considering buying a home:
* Take time to buy your first property and see it as a pathway to your eventual dream home.
* Future capital growth potential should be a key consideration when selecting your first home. As you want to buy a property that will out perform the rest of the market and deliver you the wealth creation to upgrade to a better located property this is a critical factor you must understand.
* Consider the land content of the property rather than the structure of the home. It is important to remember that land appreciates in value and the buildings depreciate in value. A property which has a land content of more than 75% has a greater chance of appreciating at a higher rate than a property where most of the value of the property is in the building.
* The block size of the property is also important. The larger the block the greater the potential the property has for future subdivision which will significantly increase the value of the property. You should check with the local Council to ascertain any future changes to land zoning which might allow the opportunity for higher density homes.
* Focusing on buying a property where there is a broad range of property owners rather than just first home buyers. For example, if the area has a significant number of second home occupied homes it means that the potential pool of people wanting to buy your property in the future will be much higher than a property than just first home buyers.
* Consider buying an older style home that you can add value to through cosmetic changes. The biggest returns are from homes where the overall street appeal has been improved. A good tip is to pick a well located home with poorly maintained gardens which may be undervalued in the current market.
Media Contacts
David Hobbs
Chief Executive Officer
Ph: (08) 9370 4440
Mb: 0417 707 768