by
19. January 2012 06:19
Sales - The real estate sales landscape continues to change - with prices having fallen further in 2011. Basically, we estimate that Perth’s better suburbs are back to 2006 prices and it really is anyone’s guess as to what is coming next. There are two very sound arguments – one to support a growth in our prices and the other to suggest that our real estate is still overpriced from a global point of view. My personal view is that the economic fundamentals and outlook are very positive for Perth, W.A. and Australia and while we continue to have a positive population flow and not enough property to supply it, the basic supply and demand principle will mean upward pressure on prices again. It is often said that Perth is a boom/bust market and is dictated by the resources sector – well if that is even partially true, it means that we are due for an upward swing sometime soon. That said, we are currently in a buyers market whereby (most) properties are keenly priced and buyers are being picky, which they can currently afford to be. The great Resources Boom of this state isn’t quite what it’s cracked up to be, apart from industries directly involved with the sector.
Rentals – One of those areas to benefit has been the residential rental market. The people arriving related to the resources sector are mostly renting, not buying. So whilst there’s been downward pressure on selling prices, there’s been upward pressure on rents. Most executive rentals in this area are moving quickly. Currently we have a very low vacancy rate due to demand,largely from the oil and gas industry.