2019/20 – A financial year that is going to be interesting!
Welcome to financial year 2019/20, a financial year that we expect to be a particularly interesting one.
Change in the property market is happening and I believe there’s a lot more to come.
As I have previously mentioned we have been able, in quite a few instances to achieve improved rental prices because of the tightening rental market.
It seems that 54% of Perth’s suburbs saw an increase in leasing activity during July with the top five suburbs having an increase in activity of 114%.
According to REIWA, the overall median rental levels remained stable at $350/week for houses and $330/week for units though median rent prices increased in 23% of Perth region suburbs.
Subiaco, Nedlands and Mosman Park had the highest increases.
With respect to property sales we are experiencing a better level of buyer enquiry.
Perth’s median price stabilised at $490,000 in July which is a good sign as the midst of winter tends to be the quietest period of the year for property sales. If it was going to dip it probably would have occurred in July.
Listings of properties for sale decreased to a total of 14,195 which is 8% lower than this time last year.
My view of WA’s prospective economic conditions seems to be strongly supported by others in the industry with forecasters advising first home buyers and prospective upgraders to make their move soon to take advantage of current conditions before the market recovers and prices rise. Think about this, as rental prices increase buyers will move from the rental market to buying therefore pushing up property values on top of the 30,000 jobs earmarked for the resources industry coming from the planned $75 billion spend- up, I think 2019/2020 will be the period when things head for a substantial turnaround.
As I said in our last edition those who snooze are going to lose the great opportunities that are currently being presented in a market that has the lowest interest rates ever, and a $1,000 tax rebate.
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