The start of 2020 offers not only a new year but a new decade of beginnings.
Latest data from the Real Estate Institute of Western Australia (REIWA) shows that the Perth property market finished 2019 off with a bang, with 64 per cent of suburbs seeing stable or increased median house price movement during the month.
Essentially, we saw an increase in demand for good quality property, which created healthy competition between buyers, resulting in quick selling times and higher sales prices.
The Perth rental market also ended 2019 on a stronger note, with the vacancy rate dropping to 2.3 per cent.
These positive results have been somewhat lost in reports, as most data focuses on how Perth is performing as a whole. And if 2019 has taught us anything, it is that we need to look at Perth in terms of individual suburb growth, as that is where we can see what is actually going on in the market and highlights where Perth’s strongest suburbs are.
If we just look at Perth, we can see that it took on average 84 days for a property to sell in 2019, however if we dive a bit deeper and look at individual suburbs, we can see that it took on average 45 days for a property to sell in White Gum Valley, 43 days for a property to sell in West Leederville, and only 39 days for a property to sell in Wembley.
This is the key difference of the Perth property market and a concept that many investors forget when they look to the West. Investors need to understand that Perth is much more fragmented, with neighbouring suburbs performing drastically differently.
Investors who take this approach into 2020 will see that there is plenty of potential for growth in Perth, as long as you know where to look. Overall, conditions are looking promising and the foundations are in place for a much more prosperous decade.
Areas with low days on market are the ones to watch, as well as any suburb with an increase in median house price or an increase in rental activity.
Investors who keep a clear head and do their research will find that there are plenty of possibilities for high return in Perth.
Here’s to a New Year, a new decade and new beginnings.
Article written by our Senior Development Consultant, Adrian Johnson.