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Strong property market conditions expected in WA in 2021

1/18/2021

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After hitting the bottom of the market during 2020, REIWA’s 2021 outlook indicates the Western Australian property market should experience steady growth in both the rental and sales market - something not seen since the strong conditions in 2013.

REIWA President Damian Collins said 2020 has been an unusual year for property, however despite the lull experienced during the start of the COVID-19 pandemic, WA is showing extremely positive signs.
Perth sales market 
“Sales activity in Perth at the start of the year was sitting at approximately 2,900 transactions per month followed by an uptick where we are now seeing nearly 4,200 transactions,” Mr Collins said
“Listings for sale have reached a 13-year low with just over 10,000 listings for sale on reiwa.com, putting upwards pressure on prices.”
Sales activity Agents on the ground have reported that recently it is not uncommon for sellers to be receiving multiple offers, including being offered thousands more than the advertised price, something which has not been seen since 2013. 
“With record low interest rates looking like they will be around for a while, many buyers are finding it cheaper to buy than rent. This is one of the reasons why we can expect sales activity in 2021 to continue gaining momentum,” Mr Collins said.
Median sale price
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“In 2020, Perth was the lowest median house value of any capital city in Australia and with the increase in population growth due to people returning to WA from overseas and interstate, this could change in 2021.
“While house prices were largely stable over the last 12 months, it is expected that prices will increase between six and 10 per cent over the next 12 months.” 
More sales informationIf you are looking to buy or sell in 2021, make sure to view our buyer advice or seller advice to help you on your real estate journey.
Alternatively keep up-to-date on the latest sales information view our Perth Market Snapshot graph for a detailed breakdown of the past week.
Perth rental marketAfter an unexpected 2020, Perth’s rental market has reached crisis levels with the vacancy rate reducing to below one per cent due to the flow on effects of COVID-19.
“Population growth increased 1.5 per cent during the 12 months to March 2020 and with more than 1,000 international arrivals expected per week, plus the domestic borders opening, the rental market could get more competitive for renters at the start of the year before it gets any better due to the low levels of available rental properties,” Mr Collins said. 
Median rent
The limited stock of rentals available has resulted in an upward pressure on rents with the median rent increasing from $350 to currently sit at $380 per week in the last few months, which is an 8.5 per cent increase. 
“We can expect rents to grow an additional 10 to 15 per cent throughout 2021, however even with this increase, WA is still the most affordable capital city to rent in across all Australian states and territories” Mr Collins said. 
Looking aheadThe positive outlook for the Perth rental market, will hopefully attract an increase in investors looking to take advantage of the favourable market conditions. This will help boost the available supply of rental properties thereby keeping rent increases to reasonable levels.
More rental informationIf you're looking to rent, make sure to check out our rental advice for the latest WA rental information and tips to help with your rental application. 
Regional
WA expects the overall market conditions to improve in regional WA during 2021 as a direct result of population growth and change in lifestyle preference due to the COVID-19 pandemic and general market conditions.
Mr Collins said we have already seen significant improvements in Karratha, Port Hedland and Kalgoorlie Boulder during the latter half of 2020 with increased rental demand and sales activity. 
Vacancy rate“Increases in certain mining areas are due to companies moving their staff closer to the mining sites to live while the borders are closed. While this has put upward pressure on the rental and sales market, other regional centres are also experiencing lowered vacancy rates, limited rental stock and an increase in median rents,” Mr Collins said.  
According to reiwa.com data, at the latter end of 2020, Albany’s vacancy rate dropped from 0.9 per cent to 0.4 per cent, Bunbury was down from 3.1 per cent to 0.7 per cent and Geraldton was 5.1 per cent to now sit at 1.5 per cent. 
Looking forward“While decreases in rental stock can be explained by higher population growth and low investor activity, it will be interesting to see how working from home impacts lifestyle choices and if we see an increase in demand for regional properties in 2021 due to people opting for an alternative lifestyle while working from home,” Mr Collins said. 

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Perth property sales soar in December

1/11/2021

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Western Suburbs Weekly
January 4, 2021 2:37Pm
Western Suburbs WeeklyCity/West

Properties sold like hotcakes in December, with sales 42.5 per cent higher than the same time in 2019.
The Real Estate Institute of WA recorded 3067 transactions for the month, which president Damian Collins said was not the norm.
“Traditionally December experiences a reduction in the number of house sales due to buyers going away for the festive period, yet we have seen a significant increase in buyer activity, which suggests that people are taking advantage of the market conditions while they are unable to travel,” he said.
“Agents have reported that good, quality stock is being snapped up fairly quickly and, with listings for sale decreasing 16.5 per cent in December, it is only a matter of time before median prices start to increase.”
REIWA is forecasting between six and 10 per cent price growth in 2021 and values are already on the move, with the latest figures from CoreLogic showing 1.1 per cent growth in December and 2.8 per cent over the quarter.


Reiwa.com data shows leasing activity increased in 100 suburbs last month, with East Victoria Park, Harrisdale, Cloverdale, Aveley and Port Kennedy the biggest improvers.
Other suburbs to perform well were Willetton, Maylands, Clarkson, Bayswater and Applecross.
Perth’s overall median rent rose $5 to $395 per week in December — the fourth consecutive monthly increase — and is the highest it has been since February 2016.
“In December it was Perth’s higher end of the market that dominated the top suburbs to see an increase in median weekly rent, with Mt Pleasant and Duncraig increasing 4 per cent to $550 and $520 per week,” Mr Collins said.
“This was followed by Applecross which increased 3 per cent to $650, Alkimos increasing 2.9 per cent to $340 and Wanneroo, which also increased 2.9 per went to see a $360 per week increase.
“As we see rental stock levels continue to remain low, we can expect rents to continue increasing, however we need to remember that rents are still a lot cheaper than they were in 2014.”


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Perth Housing Market Update

11/19/2020

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Its great to see such positive news surrounding the Perth Property Market - for investors, home-buyers and sellers alike with some growth heading our way!

According to propertyupdate.com

Perth’s housing market is back on a recovery trajectory, with home values posting a third straight month of rises.


Housing market activity has been tracking higher, with CoreLogic’s estimate of settled sales over the past three months 13% higher than a year ago.
Perth continues to show the lowest median house values of any capital city, at $475,200.

Such low housing prices, along with record low mortgage rate, improving economic conditions and government incentives are some of the factors supporting renewed price growth.
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AND MORE GREAT NEWS FOR PERTH PROPERTY...


When it comes to property investment, buying is all in the timing. While the nation (or at least the majority of the nation’s population) has been watching Sydney and Melbourne's residential markets boil over and now begin to slide, Perth’s residential property market has been preparing for its return to the spotlight.

Reports issued last week outline that there are $130 billion in mining projects either committed or in the pipeline across WA in the oil, gas, transport, mining and the construction sectors, and whichever way you look at that – it can only spell prosperity again for WA’s economy.  

Of the top 30 projects pegged for the State, 11 are in mining and eight are in oil and gas.   And there’s been an $8 billion avalanche of infrastructure projects introduced, solely in Perth, including the $1.6 billion Perth stadium, $2.6 billion Metronet project and $500 million Ritz Carlton at Elizabeth Quay, to name just a few.
Projects such as these are critical for driving population growth which is necessary for property values to increase.
With this investment bonanza and WA still ranking as the most affordable property market nationwide, many investors are looking to the west as a market poised for growth and as a location to invest, before prices once again rise.

In Perth’s current market, examples of value abound.

Case in point, you can purchase a brand new two bedroom/two bathroom, 82sqm beachfront apartment with a 55sqm balcony for $775,000 just 10 minutes from Fremantle.
Compare this to Sydney where you will be paying upwards of $1.4 million....
  

....When adding up the numbers, Perth’s property market is certainly heading in the right direction and those in the know recognize that Perth is undoubtedly offering the right mix for further investigation.

source:  The Real Estate Conversation
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For a professional appraisal and marketing plan to sell your property drop me a line anytime - I will give 100% dedication to the sale of your home in ANY Perth suburb.

Andrew Shue
Principal & Licensed Real Estate Professional
Ph:  0416 225 119
andrew@andrewshuere.com.au





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Perth Property Values On The Rise!

11/2/2020

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While the talk is currently all about the rental market, the Perth sales market continues to be a quiet achiever with house values increasing again in October.
Perth dwelling values grew 0.6 per cent to a median of $456,267 according to the latest data from CoreLogic, and were up 0.9 per cent over the past three months and unchanged from a year ago.

Regional WA also recorded an improvement in values for the month, up 0.2 per cent, but were 1.4 per cent lower over the quarter.
REIWA president Damian Collins said in late 2019, REIWA believed the new year would see increased market activity and despite the COVID-19 pandemic, the WA property market certainly had experienced this.

“When comparing October 2020 reiwa.com data to October 2019, sales volume has increased 2.7 per cent.” he said.

“Breaking it down, houses saw a seven per cent annual increase, units increased 20.4 per cent and land decreased 27.1 per cent.
“The decrease in land sales was lessened by the higher number of sales due to the HomeBuilder grant, which certainly picked up the overall annual number of sales, however it is still pleasing to see houses and units performing quite well.”

The suburb to see the biggest spike in sales activity growth in October was Yanchep with a 133 per cent increase — predominately due to the large number of land sales.
East Victoria Park followed with a 100 per cent increase, with Cloverdale (86 per cent), Hammond Park (67 per cent) and Aveley (63 per cent) rounding out the top five.
“Not only have stock levels decreased with 10,272 properties for sale on reiwa.com, which is 27.8 per cent less than this time last year, but the median days to sell has also lowered to 25 days — three days quicker than September and 22 days quicker than October 2019,” Mr Collins said.

On the national front, values were up 0.4 per cent over the month, but 0.1 per cent lower for the quarter.
Every capital city posted a rise, with the exception of Melbourne, however that market is showing signs of improvement since the announcement that private home inspections were again permitted.

Home Value IndexHead of research Tim Lawless said nationally, market activity was on the rise and likely to improve further with another interest rate cut potentially on the horizon as the RBA meets tomorrow.

“Record low mortgage rates are a key factor supporting housing market activity,” he said.
“Historically, reductions in interest rates have provided a positive flow-through to housing demand.
“If mortgage rates move to new record lows, we expect this will further incentivise home purchasing activity. “
  • Perth vacancy rate near record low
“Both house and unit rents are up through the COVID period to date,” Tim Lawless said.

“The stronger rental conditions come after a long period of weakness in rental markets; dwelling rents in Perth have only increased by 0.4% over the past five years while Darwin rents are 11.4% lower than they were five years ago.
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“The latest rise in rents can be attributed to the recent history of low private sector investment which has kept rental supply levels low.”



Natalie Hordov
Western Suburbs Weekly
November 2, 2020 9:15AM

Western Suburbs WeeklyReal Estate


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July 08th, 2020

7/8/2020

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June reiwa.com data shows the strongest month for sales in Perth since 2015, with transactions increasing 55.1 per cent compared to May and 45 per cent higher than June 2019.  
REIWA President Damian Collins said it’s clear the recent Federal and State Government building bonus grants have boosted transactions last month.  
Perth sales market“reiwa.com data shows there were 3,990 sales transactions in June, with 2,519 of these dwellings (up 15 per cent) and 1,471 land sales (up 289 per cent),” Mr Collins said.  
“The large spike that we have seen in land transactions can be attributed to people fearing that they may miss out on these grants. There is a real possibility that we will run out of titled and completed blocks in the coming months.”  
The top suburbs to see an increase in transactions were Willetton, Thornlie, Girrawheen, Dudley Park and High Wycombe.   
Median sale pricereiwa.com data revealed the median house price remained unchanged for June, which is sitting at $475,000, however the median land sale price increased five per cent compared to this time last year and is now sitting at $250,000. 
“With listings for sale down nine per cent to only 10,310 and sales activity increasing, it is fast becoming a sellers’ market. While monthly changes in prices can be volatile, rising sales and dropping stock levels are usually a precursor to rising prices,” Mr Collins said. 
“During the initial COVID-19 period there was some downside price risk to Perth property prices, however it now appears that Perth prices will generally hold firm and could even possibly rise. This is of course dependent on the economy opening up and remaining open.” 
Perth rental market Listing stock in Perth’s rental market continued to plummet in June, declining a further 15 per cent to 3,963. 
“This reduction in listings means we can expect the vacancy rate to drop further from the current 2.2 per cent. In saying that, there are many agents on the ground who are reporting the vacancy rate for their agency sitting as low as one per cent,” Mr Collins said.  
“According to reiwa.com data, the suburbs that have seen the largest increase in leasing activity growth include Cloverdale, Rockingham, Mount Lawley, Beckenham and Subiaco.”  
Median rent pricePerth’s overall median rent price remained at $350 per week in June 2020. 
“While the ban on increasing rents is in place for established tenancies during the COVID-19 emergency period, agents are reporting some evidence of rising rents on newly leased property. Once we emerge from the emergency period, we may see median rental prices rise,” Mr Collins said. 

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