Yahoo Finance The ‘unlikely’ city where property prices are rebounding
Sellers are becoming listing-happy in one “unlikely” city: Perth.
New CoreLogic data has revealed the number of new listings in Perth for the four weeks to 20 September increased by 286, meaning vendors in this capital city were becoming increasingly confident about the state of the property market.
And while the number of new listings during this period was second to Sydney, where listings increased by 382, Perth and regional WA were the only dwelling markets where new listings volumes exceeded that of this time last year.
“While transaction activity is gradually improving across the country, Perth stands out as a market primed for recovery,” property analyst at CoreLogic, Eliza Owen said.
And it’s not just new listings proving the property market is rebounding; CoreLogic’s capital city sales numbers across August show Perth is the only city where sales were above the six-month pre-Covid average.
Home values have also increased slightly, with the Perth home value index up 0.6 per cent in the 28 days to 23 September, the data shows.
Why is Perth’s property rebound ‘unlikely’?
Western Australia is the nation’s mining capital, so naturally, property prices in Perth went up during the mining boom, and went down when it ended. It’s been fighting an uphill battle ever since.
But according to Owen, WA has been supported by a 4.8 per cent increase in mining investment over the year, and jobs in the state only fell less than 1 per cent compared to the national decrease of 4.5 per cent.
What’s more, the prices of iron ore and gold (WA’s major commodities) have surged, equally benefiting the economy.
Will Perth’s property market continue to grow?
Owen said a continued upswing Perth property values would largely depend on the resilience of the market through the end of mortgage repayment deferrals, whether there are further reductions in the cash rate, and how successfully Covid-19 can be contained.
But CoreLogic aren’t the only property experts predicting Perth’s housing market to rebound - in fact, some are predicting Perth to be the next hotspot.
Hotspotting.com.au managing director Terry Ryder told Yahoo Finance Perth was one of the “busiest markets in Australia”, supported by its sales activity.
The five suburbs in Perth Ryder believes are set for property price growth are: Stirling, Joondaloop, Rockingham City, Kwinana and Wanneroo.
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