Perth market weak but still growing
Despite new data showing a further contraction in Perth, a local buyer’s agent believes the market is still likely to deliver growth.
Latest information from the REIWA shows the median price dropped by 0.2 per cent in the three months to July and sales volumes were down by 10 per cent in the month of June.
Rod Davidson from Hegney Property Group said while the market was easing from previously high growth levels, he expects a solid performance over the next 12 months.
“We saw growth last year of around 10 per cent-plus. I think it will be more five to eight per cent over the next 12 months,” he said.
While Mr Davidson acknowledges the mining slowdown has affected the property market, he believes activity in the oil and gas sector may fill the gap.
“There definitely has been a bit of a downturn on the mining sector and that has had some effect on the rental market,” he said.
“But we're probably seeing renewed activity in oil and gas which is starting to take up some of that slack.”
Data from the REIWA shows the rental market is weakening, with vacancy rates up to 4.2 per cent.
Mr Davidson said rising vacancies mean investors need to choose their areas more carefully.
“We're particularly watching the supply when we source properties for people to make sure that it's an area where there won't be an issue with renting long term,” he said.
“We’re making sure there won’t be an issue with oversupply.”