Since the May Federal Election, buyer numbers at open homes in many parts of Perth have picked up according to Paul Curran, Director of Raine & Horne Rockingham Beach.
“Two interest rate cuts and the by APRA’s recommendation to the lenders to relax mortgage serviceability assessments have attracted more buyers back to open homes across Rockingham,” Paul said.
He added, “We also see an increase in the numbers of restarters. These are buyers who’ve recently been through a relationship breakdown or have had their employment arrangements changed.
“In some cases, these restarters have changed industries and are earning fewer dollars in their new roles and have decided to downsize their housing requirements.”
While more buyer enquiries haven’t yet translated to higher median prices, Paul is predicting a better spring market than 2018. “There are 6% fewer properties for sale in Perth than twelve months ago, due to a slight increase in sales volumes,” Paul commented. “With demand picking up, there is now a distinct possibility of some slight capital growth for real estate markets in Perth’s south-west before Christmas.”
Moreover, there has already been some minor increases in the median price of land in the Rockingham LGA. Paul said, “Land prices for average 350-400 square metre blocks have stabilised at around $240,000 per block after yo-yo-ing up and down over the past few years.”
Paul continued, “Rental prices in Perth also appear to have stabilised, which is another positive sign for the market, with some well-priced properties selling to savvy investors.
“That said, landlords still need to be careful of putting up their rents too quickly and by too much.”