Is Perth about to bounce back? Here are the 10 suburbs to watch in 2017.
The Perth real estate market is poised for a rebound during 2017 due to improving housing affordability and a tightening in the supply of new homes, with new residential building approvals in Perth falling for the past 30 months.
The building boom of 2012 to 2014 brought a huge amount of new housing stock onto the market at a time when Perth's population growth was slowing, and this led to downward pressure on property values and rents.
This downward pressure is underlined by the fact that Perth property owners now offer the biggest price discount of any state capital in Australia.
Average discounts by vendors
1. Perth -7.1 per cent
2. Hobart -5.7 per cent
3. Adelaide -5.7 per cent
4. Brisbane -4.9 per cent
5. Sydney -4.3 per cent
6. Melbourne -3.5 per cent
In Melbourne, where the median house price is $130,000 higher than Perth, the average discount by vendors is only 3.5 per cent, less than half that of Perth (7.1 per cent).
The affordability of the Perth property market, combined with ‘green shoots’ in the Western Australia economy, is why the outlook for the Perth property market is positive for 2017.
With a median house price of just $510,000, professionals believe there is strong potential in the Perth market and we are now focusing on selective areas that have the most potential for capital growth in the city.
Overall, the number of properties listed for rent and for sale has started to stabilise in Perth and this is generally a forward indicator that the market has bottomed.
Ten affordable Perth suburbs as potential hotspots for 2017