January 13, 2020 by Rebecca Crommelin
Welcome to the first edition of Phil's Property Corner for 2020 - written by Phil Bertram, owner of Candour Property Group! We're kicking off the year with the latest property market updates, plus what you can expect from Perth property in 2020. Check it out below.
Firstly, we want to wish you a happy and healthy 2020 and hope you and your family had a relaxing holiday season. The Perth property market had a quiet finish to the 2019 year, the median price remained the same at $479,000 for the month of December and sales activity was down 27% from November, fairly standard for that time of the year. Median rental remained steady at $350 per week and leasing activity was down 10%. You can find REIWA’s monthly video report here.
As tends to be the case this time of year several ‘industry experts’ have put their opinions forward on what the 2020 year has in store for the Perth property market. You can find the article here, it has pieces by Damian Collins (REIWA president), Tanya Steinbeck (UDIA WA chief executive), Jason Robertson (Master Builders housing director), Cath Hart (HIA executive Director WA) amongst others. There is a very clear consensus running through the opinion pieces, a belief that the worst market conditions are behind us, confirmation that population growth is slowly increasing along with consumer confidence. Should these indicators continue on their current trajectory we should see gradual improvement in the market over the year.
The WA State Government released their mid-year review in December, tipping the 2019/20 budget surplus will increase to $2.6 billion, up from the original $1.5 billion forecast. This is largely due to a higher than expected iron ore price. They have stated that the focus remains on relieving cost of living pressures and generating more job opportunities for West Australians. The priority also remains on keeping spending restrained, with a view on reducing the state debt level. The forecast economic growth for Western Australia has revised down slightly to 3%, down from 3.5%, with this percentage remaining the highest in the country. Whilst modest, they are positive signs that the economic conditions in WA are moving in a positive direction. You can read about it here.
With the rental market tightening, 2020 is expected to see availability reduce and rental prices start to increase. In recent months we’ve also seen new government policies that are reducing the deposit required to buy their first home. We have already seen an increase in enquiry from renters wanting to buy their first home, a possibility that is much easier to access than it has been in recent years. Interest rates are at record lows, the price of good property in Perth (especially new builds) is at record affordability and deposits required are lower than they have ever been.
Candour can help you to make the comparison between buying an existing property as your first, or building. The First Home Buyer Grant still offers $10,000 towards purchasing a brand-new home, along with waiving all purchase costs that would normally apply. You won’t need to brave the display home world and dodge multiple sales reps, we can get you multiple quotes from builders on exactly the build you want, getting you excellent prices and inclusions without the stress.
If you’d like to talk through how any of this applies to you the first step is to get in touch with Phil Bertram. There is no obligation to proceed any further than you’re comfortable with and he doesn’t charge for his time. All strategies are implemented in tandem with your Mortgage Choice Mortgage Broker.
To arrange for him to call you please email him with your name and contact number on phil@candourproperty.com.au and he’ll be in touch.
