Total property listings in Perth have hit their lowest level in 13 years, pushing up property prices, according to a national buyers’ agency, which also identified three city districts tipped for plenty of upside potential.
Kate Hill (pictured above), Adviseable property buyer, said a significant undersupply of listings in Perth is adding fuel to price increases in a property market that had already been experiencing robust market conditions last year.
“According to SQM Research, total property listings in Perth in June this year were at the lowest level since April 2010 – or more than 13 years,” Hill said. “While many other markets experienced a lull or price retraction last year, the same can’t be said for Perth where prices kept rising as demand from home buyers and investors increased.”
She said there is currently an undersupply of listings for sale in Perth due to many vendors “holding off selling because of the economic uncertainty or their inability to purchase another home for themselves.”
Perth has been identified by a recent Hotspotting report as a star capital city performer, courtesy of the city and regional WA delivering more areas with rising sales activity than anywhere else.
Hill said buyer demand remained high as home buyers and investors sought out affordable property as well as solid yields in a time of higher interest rates and low supply levels.
“The Perth median house price increased 2.7% over the year ending June – the only capital city to post a positive annual result, according to the latest CoreLogic Home Value Index,” she said. “Western Australia also had the biggest percentage increase in population in the nation – at 2.3% – last year, which is putting further strain on the property market.”
Hill said the City of Stirling, Wanneroo district, and the suburbs south of Perth CBD were showing plenty of promise for potential homebuyers and investors.
“The City of Stirling has many strings to its economic and property bows with its proximity to the city being just one of them,” she said. “One of its most attractive features is the diversity of its suburbs and property prices, which are desirable to all types of buyers – from first timers and upgraders to investors looking for strong capital growth prospects and excellent yields.”
Located just 12 kilometres from the city centre, Wanneroo district was another attractive target for property buyers.
“Can you imagine a region that runs along a pristine coastline but also has a gorgeous lake and a national park within its boundaries and a booming economy and infrastructure program?” she said. “Of course, such a location is attractive to everyone – which means its property market has all the hallmarks of being a stellar investment location.”
The suburbs south of the Perth CBD should also be on the radar of buyers, for having the added advantage of being strategically located in the city’s south-east transport corridor, making several large-scale employment nodes easily accessible.
“Further growth and opportunities are expected in the future, with the area marked for infrastructure development by the federal government, encouraging additional business, industrial and residential projects,” Hill said.
“In a trend being experienced in other major markets across the nation, many of Perth’s standout municipalities are at the affordable end of the market, which includes the Cities of Gosnells and Armadale, which have three key strengths – affordability, strong yields, and excellent transport links.”
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