Should I Be Buying A Property In Perth In 2019?
The current state of the Perth and Australian property market is of high interest to real estate investors across the country. The Perth property market has seen a downtrend in recent years, with the slowing of the mining boom and lower resource prices impacting median house prices across the city.
However, there are some suggestions that the downtrend could be coming to an end, with some experts forecasting a slight increase in median property prices in 2019. The increase is predicted to continue over the short term, with analysts predicting prices to continue rising until at least 2021.
Some leading analyst predictions are listed below:
Domain’s Trent Wiltshire
Trent Wiltshire is one of Australia’s leading economists and property forecasters. Authoring Domain Property’s annual Property Price Forecast, Wiltshire has predicted a positive 2019 and 2020 for the Perth property market.
Although 2018 saw a continuation of the downtrend in prices, the trend appeared to be reversing around the end of 2018/start of 2019. A 5% increase has been predicted for Perth properties in 2019 followed by a 3% increase in 2020.
Units are expected to increase in price over the same time period, albeit on a lesser scale. The average unit price is expected to increase by 2% in 2019, followed by a similar 2% increase in 2020.
However, it’s worth noting that Wiltshire also identifies a number of potential risks which could see a continued downtrend in the property market over the coming years. These include:
- A larger or faster than expected increase in mortgage rates.
- A flood of investors selling if market confidence continues to decrease.
- An increase in the difficulty of obtaining a home loan from the major banks.
QBE Australian Housing Outlook 2018-2021
The QBE housing outlook estimates that the Perth median house price has fallen by around 12% since peaking in mid 2014. This alone suggests that we could be due for a reversal in the downtrending property prices in 2019 and onwards.
The QBE report identified a number of other factors that are lining, indicating that Perth property prices could be starting to rebound. These include:
- A reduction in the unemployment rate over the past 3 years.
- A reduction in the rental vacancy rate over the past 2 years.
- A 19% reduction in the average rental price since mid 2014.
- Increasing population growth rates, leading to a higher demand for properties.
So, Should I Buy A Property In Perth In 2019?
The general consensus is that yes, 2019 is the right time to purchase a property in Perth. Many of the key performance indicators seem to be lining up to suggest a reversal of the downtrend of median Perth property prices in recent years, which points towards 2019 being a productive and rewarding year to buy a new property.
However, it’s extremely important to make sure that you always do your own research before committing to major decisions like buying a property. Read any reports released by industry experts, look at the key property performance indicators, and most importantly, speak to people who know the Perth property market.