Perth house prices have slumped over the past five years but positive signs are emerging for West Australian households, creating hope of a rebound in residential values.
CoreLogic Research Director Asia Pacific Tim Lawless says the falls – a cumulative 20.6 per cent from mid-2014 to August 31 – have hurt household wealth, State Government coffers and the broader property sector.
Mirvac General Manager Residential Development WA Paige Walker says the market has bottomed and, in the absence of State Government initiatives on stamp duty relief for off-the-plan apartment buyers, or to drive population growth, the residential market is likely to bump along the bottom for another 12 months.
But Mr Lawless says despite the wealth hit, there’s a silver lining.
“The Perth and regional WA housing downturn has been negative for household wealth but housing affordability has improved remarkably across the city and regions,” Mr Lawless says.
“First home buyers are proportionally the most active of any State.”
Mr Lawless and Ms Walker are two of Property Council WA’s not-to-be missed speakers at an October 24 lunch at the Perth Convention and Exhibition Centre.
The duo, with Stockland’s Residential Communities Chief Executive Andrew Whitson and Satterley’s General Manager of Operations and Acquisitions Brendan Gorringe, have valuable market intelligence on WA’s residential sector and plan to share their insights into how Perth’s residential market is tracking, what will make it better and how you can make the most of this.
Property Council WA Executive Director Sandra Brewer said now was the ideal time for the State Government to consider policy, such as limiting stamp duty to the land component for off-the-plan apartment buyers, levelling the playing field for house-and-land and off-the-plan apartment buyers.
WA apartment buyers have reported a slump in sales since the State Government introduced a Foreign Buyers Surcharge, which added almost $50,000 in extra stamp duty to the cost of purchasing an average apartment, on January 1.
While Premier Mark McGowan and Treasurer Ben Wyatt have stood firm on the Foreign Buyers Surcharge, both have indicated that they plan to review the taxes and charges that apply to the industry.
Don’t miss out on your chance to find out what’s really driving Perth’s residential market. To book visit: https://www.propertycouncil.com.au/web/EventDetail?EventKey=WDL241019
Sandra Brewer, Property Council WA Executive Director
