Recently, Alan Bourke attended a Core Logic presentation regarding the expected state of play in WA's property market over the next 12-18 months.
In summary, Core Logic believes that Perth, and WA as a whole, are set to outperform other states within Australia. This comes as experts have projected a market decline of 5% for Perth and up to 20-25% across the rest of the country over the same period.
Notably, most capital cities in other states have increased by 20-25% over the last 2-3 years whereas Perth has increased by 9.2% in houses and 0.4% in the units market. So, the correction of other capital cities of that magnitude is not as dramatic as first thought.
Perth is the fourth largest capital city in Australia but has been noted as one of the cheapest of all capital cities to buy property, second only to Darwin.
Median prices in Australia look like this:
- Sydney $1.1 million
- Melbourne $798,000
- Brisbane $784,000
- Canberra $937,000
- Hobart $735,000
- Adelaide $642,000
- Perth $554,000
- Darwin $509,000
Core Logic also predicts that interest rates are set to increase by another 1.3% over the next 12 months, undoubtedly impacting the median mortgage buyers will be paying in WA, with up to $800 extra per month in repayments. In comparison, Sydney borrowers are expected to pay up to $1714 extra per month following future anticipated rate rises.
With this in mind, the market predicts that Eastern States investors will once again look to Perth as a ‘safe haven’ for value with better rates of return.
When it comes to first-home buyers, many have had their borrowing power severely curtailed as a result of the recent 1.5% rate increases. Buyers who previously could have borrowed up to $420,000 are said to now only borrow up to $290,000 on the same income. This is likely to leave more young people staying at their family home for longer, or choosing to rent for extended periods of time.
Core Logic believes that interest rates may come down in Q3 2023, once inflation drops to a healthier rate. To the Reserve Bank of Australia, a healthier economy means an inflation rate in the 2-3% range as opposed to the current 6% and 3% interest rates.
Having said all that, we have seen a real uptick in buyer enquiry and sales in the last week. Buyers seem to understand the shortage of listings and understand the interest rate pain is not for the long term. It’s now about securing a property before the seasonal upturn in Spring.
WIN this Father's Day at Bourkes!
Fathers Day is just around the corner and to celebrate we’re giving away a Red Balloon Experience voucher valued at $250!
To enter, simply head to our Facebook page here and message us stating your ideal Father’s Day celebration. Make sure you are liking or following our page too! The competition closes at 11:59pm AWST Thursday 1st September and 1 (one) lucky winner will be announced on Friday 2nd September.
Spring into the market this Spring!
Spring tends to be a key selling time for many property owners, with longer days and more natural light to show off every corner of their beautiful homes. We often see a strong increase in the number of listings on the market by late September, with many West Australians planning for a festive Summer in their new homes. If you are thinking of selling, then our tip is to go early! Try to get your renovations, styling and photos done in August so you can launch as soon as Spring has sprung. You can read more of our best tips for making the most of a Springtime launch via our blog here.
At Bourkes, we are committed to creating the best experience in property. Our team is dedicated to building long-lasting relationships, tailored to your unique property background and goals. If you are seeking an appraisal and are ready to further your experience with a team you can trust, contact our office today on 08 9474 2000.
Tenant of the Month
Congratulations to one of our Hamilton Hill tenants, Ayeisha for taking home the Tenant of the Month Award for August. Ayeisha always leaves her property manager smiling and we are grateful to have her as part of the Bourkes community.
Contractor of the Quarter
Congratulations to Ace’s Tree and Garden Service for continuing to service our Bourkes community and keep our property managers happy. With Spring just around the corner, your garden may need some TLC – the team at Ace’s come highly recommended at Bourkes.
Tucked away in the middle of a small group of just 9 apartments located on the first floor, this great little property to hit the market incorporates a neat design with 30 course high ceilings, timber floorboards, a well-appointed kitchen that boosts stone benchtops and modern appliances including a stainless steel dishwasher.
1 x 1 x 1 Apartment
Offers above $349,000 presented
Much can be said about its location with the complex sitting as close to the river as you can get, cycleways and walking paths are on your doorstep and enjoying a glass of wine at sunset while dolphins frolic in the water is as easy as walking downstairs to the river’s edge.
2 x 1 x 1 Unit
Offers above $369,000 presented
Superbly situated on the top floor of this resort-style complex on the edge of the idyllic South Perth foreshore, this recently renovated and surprisingly spacious unit is packed with features.
2 x 1 x 1 Unit