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  • 2015 - the year of the buyer and renter

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    Author: REIWA President Hayden Groves

    2015 - the year of the buyer and renter - reiwa.comAs another year comes to a close we take a look back at how the WA property market fared and see what might be in store for 2016.

    Unlike Sydney and Melbourne, the market in Perth was more subdued than previous years especially in terms of sales volume. While we also saw some mild softening in quarterly median house prices, there was stability in annual median prices across WA.

    Pleasingly, housing affordability continued to improve in Perth throughout the year which was aided by generous levels of stock in the market. Because of this, we saw buyers spoilt for choice with most taking their time to find the perfect property. On the flipside, this put some pressure on prices and, as a result, it wasn’t uncommon for sellers to modify their price expectations when selling.

    Suburbs south of Perth, including Baldivis, Canning Vale and Thornlie, performed strongly as did Ellenbrook, Balga and Dianella in the North. Ardross was the star performer in the post one million dollar bracket. Regionally, the South West continued to perform well, while areas that experienced rapid growth in recent times began to adjust as construction in the resources sector slowed.

    First home buyer activity was solid, especially earlier in the year, however, the abolishment of the First Home Owner Grant for established houses has had an impact on sales volumes over the last couple of months. Grants for those who construct a new home are still in place and this has continued to support the new build market.

    The rental market was characterised by higher than average stock levels and falling rents providing tenants with the opportunity to shop around for their ideal home. As a result, there was pressure on property managers to retain and attract quality tenants.

    Looking ahead, 2016 will be a great time to buy and rent both in metropolitan Perth and in regional WA. We expect listings to stay at similar levels and with a shift in local population and migration trends, demand could remain soft in the short term. 2016 is shaping to be the ideal year for trade-up buying; an even, stable market is long overdue and I expect 2016 to be such a year.

    If you’re looking to sell your property next year, be prepared to meet the market; there will always be people looking for a new place to live and enthusiastic investors looking for a property.