If you are thinking about buying a property, your first step should be to find a buyer’s agent in Perth. At Buyers Agent Guide we can show you the value of using an agent and provide tips on how to get the most out of your professional buyer.
By using an agent you will save yourself time, hassle and a lot of legwork. Not to mention the competitive advantage you will have when it comes down to negotiating the price of the home or commercial property you are interested in buying.
Whether you are a home owner, first home buyer or property investor, Perth is proving a wise place to buy. Before you find a buyer’s agent in Perth, read on and take a look at our analysis of the local property market.
Perth’s real estate market has surged ahead over the past decade. This was driven by Australia’s resources boom, however in recent times the city has seen the beginnings of a market slump. This means that there are opportunities in the making no matter where you sit in the market.
If you are looking for a small unit, family home or commercial premises there are bargains to be had. However local, interstate and overseas investors should all take advantage of the skills and knowledge on offer from independent real estate professionals with local expertise. This will give you the best chance of finding a property that suits your needs at a fair price.
Property buyers have thorough knowledge of the areas they work in and can provide insights regarding the areas with the greatest potential for capital growth or strong rental yields. They will also be well versed in plans for development and forecast changes in population demographics. This is particularly important in a rapidly growing city such as Perth.
Perth Property Market Update (As at March 2013)
Over 2012 the Perth real estate market continued to return to health buoyed by the city’s ever-growing population. The year also saw the return of buyer confidence.
Rental rates in Perth for houses grew 17.5% over 2012 to $470 per week. Units rose 14.3% to $400 per week. These steadily growing rental yields have resulted in a larger number of first home buyers, with the shift underpinned by historically low interest rates.
The last figures released by the ABS (data for November 2012) showed that WA has the largest proportion of first home buyer loans in the country, comprising 24% of total housing loans in the state. This is on the back of 35% growth in approvals of first home buyer loans over the first 11 months of 2012 when compared to the prior corresponding period.
Perth closely tracked capital city median house and unit prices for the three months to February 2013, with a median house price of $480,000 against a capital city benchmark $485,000. Median unit prices were $410,000 compared to the benchmark of $415,000 (see figure 1).
Figure 1 – Median house and unit prices (3 months to February 2013)
Despite significant growth in rental rates, as of February 2013 Perth is still tracking relatively close to other capital cities’ rental yields. Houses achieved a yield of 4.6% and units were at 5.2% as of February 2013.
Perth saw the largest market growth of all major capital cities over the year, with property values increasing by 3.7% (see figure 2) over the year from March 2012 to February 2013. Notably this increase was almost triple that of the capital city benchmark which sits at 1.3%. House values increased by 3.9%, significantly more than units which only rose by 1.5% over the year.
Alongside Darwin, Perth has been a standout performer for capital growth. Perth’s average rate of capital gain over the past 10 years has been 8.9% and far outstrips the capital city benchmark of 4.9%.
Figure 2 – Annual change in capital city property values
Buyer demand in Perth continues to strengthen with property sales for the second half of 2012 being 6.8% higher than in the first half. Sales for the year were 7.6% higher than the rolling five-year average. It is estimated by RP Data that in 2012 there were 24.7% more property sales than in the prior year.
Figure 3 – Decline in property values from their peak (to February 2013)
Figure 4 – Average annual change in property values (past 5 years to February 2013)