We finally have toilet paper again, who would have thought that this would be a discussion point ?
New words have been introduced to our vocabulary, “Social Distancing” “COVID-19” “Flatten the Curve” “Self-Isolation” “Road Map to Recovery” however we are extremely fortunate to be in the position we are over here in Western Australia. We are the envy of the other states in Australia, well played by Mark McGowan and the State Labor Government as well as the solid leadership and support by the Prime Minister Scott Morrison and the Federal Liberal Government. The support packages provided to businesses and individuals has been a masterstroke and has kept our economy in great shape, ready for a staged recovery.
Perth Market Snapshot
The doomsday predictions of the real estate market dropping 30% due to COVID-19 pandemic, have yet to materialise, in fact the Perth property market has stayed resilient and in positive territory for the first quarter and month of April.
During the month of March, we saw sales activity plummeted by 40%, but at the same time listings also dropped a similar amount. Overall the total number of properties for sale in Perth sits at 11,611, which is 30% lower then the same time last year. These figures don’t reflect all suburbs in Perth. Some suburbs have still performed better than the average, but we also had some under performing, below average.
Searches for property on realestate.com.au saw a plunge by the end of March, but this has since rebounded to be considerably higher than this time last year.
In accordance with the Reserve Bank of Australia, unemployment is forecast to hit 10% across Australia, fortunately in Perth we have strong job opportunities within the mining and resource sectors which should provide some cushioning. Small businesses also showed resilience and changed the way operate to adapt with the restrictions. The JobKeeper initiative saved jobs, this should assist businesses to be prepared and ready to restart once we start returning to normal life. Further COVID-19 related actions will be evident in the April data. In Western Australia, we are fairing well compared to the rest of the country.
Is now a good time to buy ?
If you’re in a position with good job security and demonstrated good savings and budget, now is a small window of the market favoring the buyer in Perth. Due to some fear and reduced confidence in the market, we have less competition. There are large number of buyers in the market, however the confidence in making offers is low. For the astute buyers who are well prepared and have done the research, this market is a great opportunity. Off market properties are at an all time high, ensuring you have access to all available property is essential.
Take advantage of the good deals available, with less competition and motivated sellers. Credit is cheap and affordability is the best in Australia.
This is also a great reason to use a good Buyer’s Agent to utilise good research, market knowledge and network of contacts.
Outlook for Perth
Home opens have returned with a bang! Buyer activity and turnout hasn’t slowed. It shows there is pent up demand in the right areas. Inner city suburbs, within 15km of the CBD will continue to hold up as demand is high for good quality property and stock levels are low. Vacancy rates are low and yields are at healthy levels and offer great returns. Perth is one of the most affordable markets in Australia right now. The fundamentals haven’t changed, mining investment is still strong, commodity prices have all held up well. Western Australia is a resource driven economy.
In accordance with the IMF, the outlook for our biggest trading partners in China and India are projected to grow by 1.2% and 1.9% this year and 9.2% and 7.4% in 2021. This should underpin growth and employment for Western Australia as we continue to produce the sought after commodities.
For owner occupiers, buying the right property for the right price in the right location is critical.
For Investors, it’s all about making the numbers work and buying in excellent high growth areas.
Resolve Property Solutions is an independent and qualified Buyer’s Agent specialising in Perth property. We will work hard for you to help your search, negotiate and secure your property goals at the best possible price.
Our story started with the passion for property and the research behind finding the right one.