Market Report: WA, February 2019

Perth’s real estate market continues to show signs of improvement, while increased infrastructure investment, and the possibility of an interest rate cut augur well for long-term capital growth. “Perth is not roller-coasting like some of the eastern state property markets,” said Craig Abbott, General Manager, Raine & Horne.

Indeed, REIWA claims that Perth median house values rose by 5.2% in the 12 months to December 2018. Moreover, analysis shows that 69 suburbs in Perth experienced an increase in median price during the December 2018 quarter.

“There are more and more projects starting such as highways connecting the bigger regions to Perth, and there is plenty of activity in the oil and gas sectors,” said Craig. “There are new projects on the drawing board for the state’s north-west shelf and the far north.”

A new database compiled by Business News has found about $130 billion of major projects underway or in the pipeline across the mining, oil, and gas, transport and construction sectors in Western Australia.

“In addition to this infrastructure investment, jobs growth and employment look good for Western Australia,” notes Craig. Over the year to November 2018, the level of employment in Western Australia rose by 19,100 (or 1.4%), to 1,351,800, according to the Western Australian Monthly Labour Market Summary. The unemployment rate remained flat at 6.5%, and below the 12-month high recorded in March 2018.

“If the RBA cuts rates before the end of 2019 and the Australian Dollar tumbles, there will be more foreign investment in the resource sector and subsequently, WA real estate markets,” predicts Craig.

For now, Perth’s $1 million-plus prestige market represents good value with vendors pricing their properties sensibly, Craig confirms. The standout prestige suburbs include Dalkeith, Nedlands, and Claremont to the west of the CBD, says Craig, who also nominates North Beach, Sorrento, and Hillarys, as solid performers. 

Outside Perth, Craig says the City of Bunbury offers excellent value. “This market is galloping along as there is a lot of mining investment that will benefit the residents of Bunbury this year.” The median house price in Bunbury is $380,000.

Why Raine & Horne Commercial?

Our full-service commercial real estate network can provide in-depth knowledge of local and regional property markets, with insight and understanding that comes from being a part of a long-established national and international property group. Committed to personalised service and achieving unsurpassed results, our clients continue to benefit from our network strength, which allows substantial cross-flow of international referral, advice and investment.

The Raine & Horne Commercial network is comprised of 100% owner-managed offices and includes numerous industry leaders and award winners. We employ agents who are empowered, encouraged to share and who maintain first rate communication to deliver the best possible outcome with every transaction. We pride ourselves on staying abreast of local and national trends and developments in the property industry, resulting in consistently cutting-edge services and holistic solutions for our clients.

Our industry experts embody and respect the family-oriented values synonymous with the Raine & Horne Commercial brand, allowing us to provide a complete range of professional services for all aspects of commercial, industrial, retail sales, leasing and specialist properties.