WA Perth market 2020

{Note from mods - this thread continued from here: Perth market 2019 [WA]}



Perth property market outlook: experts’ predictions for 2020

Damian Collins
Reiwa president
The WA property market should experience better conditions in the new year, with some positivity expected in both the sales and rental market.
Sales
The New Year should see some positive changes in the property market, including greater sales activity, the return of investors and moderate increases in rent prices..
We saw lower sales activity at the start of the year, followed by an uptick in the second half of 2019, while listings for sale in Perth decreased from 17,000 to 14,000 – stock levels this low were last seen in 2014.
We expect sales activity in 2020 will continue to gain momentum, however there is a possibility that rising consumer confidence levels, coupled with improved housing affordability, could translate into higher sales volumes than we have seen in the last few years.
The full impact of the rate cuts and tax reforms put in place during 2019 have not yet been felt in WA, but it is expected the onset of these initiatives would be seen later in 2020.
With the current low interest rates and Perth’s population growth slowly but steadily improving, Perth’s median house price could improve over the next 12 months, however, we do not expect this rise to be consistent across all sectors of the market.
Rental market
The Perth rental market outperformed the sales market in 2019, with stable median rents, reasonable leasing activity levels, declining listings and a plummeting vacancy rate to sit at 2.3 per cent.
This upward trajectory should continue through 2020 with consistent demand in line with improving population growth and reduced supply the key drivers for this improvement.
We are already seeing competition for good, quality stock which means we can expect this to pick up at the start of the new year, and continue to gain momentum later in 2020.
Perth has recorded an overall median rent price of $350 per week since April 2017, the longest period of stable rents experienced since Reiwa first started recording rental data in 2001, but this could change in the new year.
We’re at 32 months and counting of stable median rent prices in Perth.
If listings continue to decrease, new build stock continues to decline and leasing volumes remain healthy, we should see the overall median rent price gradually increase.
Perth currently has the lowest median house value of any major capital city and this, combined with strengthening rental conditions and the opportunity to get into good suburbs at an affordable price point, meant investors are likely to re-enter the market in 2020.
An increase in investors looking to take advantage of the favourable market conditions will help boost the available supply of rental property, keeping rent increases to moderate levels.
Regional market
Reiwa expects overall market conditions to improve in regional WA during 2020 as a direct result of investment in the mining sector.
Karratha has already seen improvements during the latter half of 2019 with increased rental demand and sales activity.
In addition to Karratha, Port Hedland and Kalgoorlie are areas to watch in 2020, with the new mining projects going a long way to restoring confidence in these regions.
These projects are expected to create thousands of new local jobs, which should continue to support population growth, improve demand for housing and aid recovery.
The WA Government’s push for tourism looms as another positive for regional WA, as it could provide some much-needed support to WA’s tourist focused regions.
Mr Collins said after a prolonged period of turbulent conditions following the slowdown in the mining sector, the WA market appears to be stabilising, but while the worst appeared over, Reiwa cautioned against expectations of a rapid recovery during the next 12 months.

Cont...

 

Here's hoping for a better year in 2020

 

Wow that’s a lot of “could” and “should” in one article!

 

It would be nice, but I’m not holding my breath!

 

Fresh new thread for the new year. Woohoo. I do love a clean slate. I'm excited about what's to come this year. I know I say that every year as ever the optimist but my excitement/desire is to see some growth (5% or less) over my properties - nothing too major

 

I'll be very happy just to end the year with more equity than I start with. I'd be ecstatic really, after the last 5 years of pain.

 

How bad really is Armadale, my wife’s family lives there and harass us to move over with the kids. Thx

 

My cousin lives in Armadale. Very much street by street. Some areas are pretty bad.

 

It certainly wouldn't be my first choice of suburbs if I was thinking of moving to Perth! Are you sure they live in Armadale or the City of Armadale which is a group of suburbs/council area. There is practically nothing in Armadale over $450k which means it's one of the cheapest suburbs in Perth. If you're from Brisbane then it's a bit like Logan area.

 

I’m in pimpama so I know Logan well, it’s definitely in armadale 200mt from the train station have you hear of ‘Leda or balga’ any opinion on those areas? Ta

 

Nope and Nope.
Nollamara or Westminster (12km to CBD) is only a little more than Balga and a "better" option imho. However for about the same about huge choice in Perth

 

Ahh ok thx I’ll start my research

 

Similar vibe with Leda, Orelia, Balga, Clarkson, Koondoola, Girrawheen. They are all some of the cheapest suburbs and most have some social housing with some proud bogan heritage. Having said that, everyone needs housing and if that is your price bracket than that is your price bracket. Armadale at least has the train station which some of those suburbs don't. There is even some nice character homes in the area from when it was a village and it's shopping area has tried to keep some of that village vibe intact.

 

Joondalup has a lot of infrastructure hospital, Uni huge new shopping center and everything you could want. Clarkson is about 8km North with a train station. $250k to $400k buys a lot of house in old Clarkson near train station. The closer to the coast the newer and more expensive it becomes. Lots of houses less than 5 years old. I have not ridden my bicycle around Clarkson a great way to get the feel of a suburb. I have driven a little around Armadale. I would take Clarkson over Armadale but ymmv

 

Im just getting excited by the fact I could move across with no mortgage if I pick something up around 200k. and I know the prices in Perth have been smashed plus my wife would want to be close to her family who are in armadale/ forest lake?? ( near the airport).

 

I have properties in girrawheen. Personally for me they have been great. I lived there for over 8 years and never had any issues. I found the area to be full of mostly migrants rather than bogans. Girrawheen is known for having a very large Vietnamese community. My place was less than 10min from the beach. And 5 min to the train station / main arterial freeway. Not as cheap as armadale but less than 15km from the city and 5k from the beach it's hard to beat for the price.

 

I would be wary of some of the $200k stock. Don't assume that because prices got smashed that you're picking up a bargain that will rebound. The outer rings areas like Armadale are still experiencing some declines and generally will be the last to recover. Check out the data here compared to the rest of Perth reiwa.com - Suburb profile for Armadale

The temptation to be mortgage free is high but I think I'd go for a small mortgage and just smash it off and get something a little better. Houses in Armadale have probably lost around $100k in value since the end of our boom (2014) so a $200k house will need a lot of growth to get back to those levels but it is possible.

All depends on your needs (number of bedrooms/kids/schools etc). Also check out Kelmscott which is a bit closer to CBD than Armadale. Clarkson as mentioned above has a lot more modern amenities and the beach but if location to family is important then it's not going to be a good fit.

 

Highly highly recommend you stay as far from Armadale as possible. Not the best suburb to be raising a family. Known for high crime and "undesirables". Each time I have to drive nearby I ensure the doors are locked, despite the odd appealing street and cheap prices, I would pay more for less North or South of Perth closer to the freeway.

 

I don't know what your budget is or house type you are after but if being close to family is your top priority with as little to no mortgage as possible I would look at older homes in Huntingdale area.

6 Flowerwood Way, Huntingdale, WA 6110

This would be something I would probably consider, save on those golf membership fees