Whether you’re selling property or looking to buy, navigating the Western Australian property market can be a daunting task, especially with its ever-changing dynamics. To help you make sense of the current landscape, we’ve compiled five essential things you need to know about the WA property market right now, with insights from Cath Hart, CEO of the Real Estate Institute of WA (REIWA).
1. It’s a perfect storm
Perth’s median house price is on track to grow more than 20 per cent to reach $740,000 by the end of 2024, according to REIWA’s latest quarterly market update.
At the end of August, Perth’s median house price was $688,000, already 20.7 per cent higher than a year ago and 26.2 per cent higher than the previous peak of $545,000 set in 2014.
Ms Hart said the market continued to be driven by strong population growth and constraints in the building industry.
“Demand remains strong, houses continue to sell in record time and prices keep rising,” she said.
“WA recorded 3.3 per cent population growth in the year to December, which included about 79,000 net arrivals through overseas and interstate migration.
“That’s about twice the population of Baldivis, which significantly boosts the demand for housing.
“While new home starts are being now completed in quicker timeframes, Perth’s overall housing completions remain low, so we have an ongoing imbalance between supply and demand. It’s a perfect storm.
2. Be prepared and proactive
Does it feel like as soon as you see a ‘For Sale’ sign go up, there’s an ‘Under Offer’ sticker slapped across it, almost immediately? You’re not alone.
Ms Hart said this was a common frustration in a challenging market and could be really disheartening.
“If you are looking to buy you need to be prepared,” she said.
“Ensure you have your finances organised so you can make an offer when you see a home you like and be patient – homes are still coming to the market in reasonable numbers, they’re just selling quickly.
“You also need to be incredibly proactive – sign up for alerts on reiwa.com so you are made aware of new listings as soon as they come online, and register your interest with REIWA agents in the areas where you are looking to buy. They can contact you as soon as a suitable property becomes available, possibly before it officially hits the market.
“Finally, you may want to consider engaging the services of a REIWA buyer’s agent. They can do all the leg work for you and liaise with selling agents when properties that meet your needs become available.”
3. Set yourself up for success
When beginning your search for a real estate agent, it’s crucial to rely on reputable sources.
reiwa.com offers a free tool, AgentFinder, which is your directory to agents certified with the Real Estate Institute of WA whose properties are listed on reiwa.com. This comprehensive list ensures you have access to real estate professionals actively serving your area, with no strings attached.
Before you pop up that ‘For Sale’ sign, make sure you understand current trends and conditions. Start by researching current market trends, in Perth as well as in your suburb. Look at key metrics such as median prices, median selling times and suburb interest level on reiwa.com suburb profiles.
Browse through recently sold properties on reiwa.com to see how they were presented and what features helped them stand out and compare your home against the current listings.
Then speak to your agent about how best to present and market your home to maximise your profit and minimise stress.
4. Government incentives
If you’re looking to buy a home, make sure you use the State and Federal Government incentives and programs available to you.
Keystart is a valuable State Government initiative that offers loans with as little as 2 per cent deposit and doesn’t charge Lender’s Mortgage Insurance. Keystart’s property price and income limits are now set using REIWA’s median house prices and will be regularly reviewed to reflect market conditions, ensuring as many people as possible remain eligible for their loans.
The First ³Ô¹ÏÍøÕ¾ Owner Grant (FHOG) offers $10,000 for purchasing or building a new home. First home buyers in WA can also benefit from reduced stamp duty rates for established homes, new builds and land, known as the First ³Ô¹ÏÍøÕ¾ Owner Rate of Duty (FHOR).
The ³Ô¹ÏÍøÕ¾ Buyers Assistance Account provides up to $2,000 to eligible first home buyers to cover some of the incidental expenses that arise while purchasing a home, like mortgage registration fees, solicitor and/or conveyancing fees, valuation fees, inspection fees, establishment fees, mortgage insurance premiums and lending institution fees associated with the purchase of the property.
And the First ³Ô¹ÏÍøÕ¾ Super Saver scheme allows eligible first home buyers to save a deposit via their superannuation fund. You can make voluntary concessional (before-tax) and non-concessional (after-tax) contributions to your super to help you save.
5. Hot suburbs
If you’re seeking property hotspots, start by looking at the suburbs that are experiencing strong price growth and/or are seeing homes sell quickly.
In the year to August, Bellevue, Armadale and Hillman recorded over 40 per cent growth in their annual median house sale price. Bellevue’s growth was close to 50 per cent.
Houses in Hillman sold in median of five days in the year to August, while they sold in a median of six days in Cooloongup, Langford, Leda and Orelia.
Ms Hart said affordability remained a key factor for home buyers and investors, and the majority of the current top performing and fastest selling suburbs were priced well below the overall Perth median house price.
“However, price isn’t the only factor that affects a suburb’s popularity,” she said.
“Location and lifestyle can also play a role, and when you are buying or investing it is a good idea to speak to a local REIWA agent for some on-the-ground market insights.”
As seen in The West
