Around 22,000 WA dwellings will reach completion in 2015 and 2016. This increase in residential housing is likely to cause an influx of stock on the property market in 2015 and into 2016.
When there are more properties on the market along with decreased population growth, a fall in demand and weak consumer sentiment – the property market is likely to weaken.
As a result of this:
- The general residential suburban housing market will be challenged.
- The apartment market is likely to follow suit from late 2015 and into 2016.
- As the rental market continues to weaken, landlords will need to work harder to differentiate their property from other competing properties in order to keep and attract quality tenants.
- All landlords will need to consider this.
- The vacancy rate (percentage of empty rental properties) will continue to rise above long-term averages.
Now the good news for WA
- MAJOR Perth infrastructure projects could lift property prices in surrounding suburbs by as much as 20 per cent, according to an industry analyst.
- Valuer Gavin Hegney said projects such as Elizabeth Quay, the new Perth Stadium and the Forrestfield train station would play a crucial role over the next 10 years in shaping Perth’s long-term capital growth.
- “There are really two kinds of infrastructure that are going to affect property values,” Mr Hegney said.
- “There are projects like Elizabeth Quay and the new stadium that are going to lift prices for the whole state.
- “Then there are projects like the Forrestfield train line, which will have an effect concentrated on that area.”
Mr Hegney said while the stadium might add 10 per cent to house prices in Burswood (current median $876,000), the Forrestfield train line could lift prices by 20 per cent (current Forrestfield median house price is $465,000).