Perth’s real estate market continues to show signs of improvement, while increased infrastructure investment, and the possibility of an interest rate cut augur well for long-term capital growth. “Perth is not roller-coasting like some of the eastern state property markets,” said Craig Abbott, General Manager, Raine & Horne.
Indeed, REIWA claims that Perth median house values rose by 5.2% in the 12 months to December 2018. Moreover, reiwa.com analysis shows that 69 suburbs in Perth experienced an increase in median price during the December 2018 quarter.
“There are more and more projects starting such as highways connecting the bigger regions to Perth, and there is plenty of activity in the oil and gas sectors,” said Craig. “There are new projects on the drawing board for the state’s north-west shelf and the far north.”
A new database compiled by Business News has found about $130 billion of major projects underway or in the pipeline across the mining, oil, and gas, transport and construction sectors in Western Australia.
“In addition to this infrastructure investment, jobs growth and employment look good for Western Australia,” notes Craig. Over the year to November 2018, the level of employment in Western Australia rose by 19,100 (or 1.4%), to 1,351,800, according to the Western Australian Monthly Labour Market Summary. The unemployment rate remained flat at 6.5%, and below the 12-month high recorded in March 2018.
“If the RBA cuts rates before the end of 2019 and the Australian Dollar tumbles, there will be more foreign investment in the resource sector and subsequently, WA real estate markets,” predicts Craig.
For now, Perth’s $1 million-plus prestige market represents good value with vendors pricing their properties sensibly, Craig confirms. The standout prestige suburbs include Dalkeith, Nedlands, and Claremont to the west of the CBD, says Craig, who also nominates North Beach, Sorrento, and Hillarys, as solid performers.
Outside Perth, Craig says the City of Bunbury offers excellent value. “This market is galloping along as there is a lot of mining investment that will benefit the residents of Bunbury this year.” The median house price in Bunbury is $380,000.