Key Highlights for WA Property 2017 – 2020
This year, QBE partnered with BIS Oxford Economics to produce the QBE Australian Housing Outlook 2017 -2020. The report provides an analysis and forecast of the key drivers influencing the residential housing market nationwide. The key themes of the report featured the growing prevalence of units on property landscape. Units had grown significantly in all capital cities, suggesting that the “Australian Dream” is perhaps changing – Aussies are considering apartment life far more than they had before.
Housing
Still reeling from the fallout of the mining investment boom, WA is facing challenging conditions with the forecast for Perth’s growth to remain minimal over the next few years. The median house price fell by 14% in the three years to June 2017 to be $520,500. The most substantial decline was felt in middle ring suburbs. There was a significant oversupply of dwellings, which was estimated to be at 24,900 as of June 2017.
Units
The strong mining related migration bolstered unit growth during the boom. Now that population growth has reversed, unit rents and vacancy rates have weakened across WA. The median unit price fell by 7.6% over the past three years to $402,200 as of June 2017. While the total market is in oversupply, it was estimated that oversupply is greater within the unit market.
Regional Mining Centres
Hit the hardest by the boom fizzle-out, regional mining centres experienced the largest decline in resource-related investments. Prices are highly unlikely to get close to previous peaks in the short to mid-term.
Our Outlook
With prices of property bouncing at the bottom of the market, WA has an opportunity for growth over the next few years. With the eastern states capital cities peaking and beginning to slow, Perth prices have a potential to increase and catch up. Furthermore, with international interest in Perth property picking up speed, the bottom of the market provides a significant opportunity to make the most of the low prices before they rise.
At Select, we offer no-obligation, quality, and free home loan advice to help you reach your financial goals. Give us a call on (08) 9417 3399 to talk to us about home loan options that suit your circumstances.
Source: QBE. (2017). The QBE Australian Housing Outlook 2017-2020. Retrieved from https://www.qbe.com.au/campaigns/housing-outlook