Buyer’s agents report increasing competition in Perth property market
Promoted by Momentum Wealth
In 2017, all investor eyes were turned towards the property markets of Sydney and Melbourne and, in the latter half especially, towards the booming city of Hobart. But some exciting things have been unfolding throughout 2017 in the Australia’s most Western city that only the really in-the-know investors have recognised.
“We noticed it in early 2017.Investment grade properties were moving more quickly and new stock wasn’t coming onto the market as fast,” comments Emma Everett, Quality Assurance Manager – Residential at Momentum Wealth.
“Our team of buyer’s agents have reported an under current of increasing buyer competition in the market all throughout 2017, making the search for good property increasingly harder.”
It sounds paradoxical for a down market, but the reality is that in any market good investment stock is rare, and as the latter half of 2017 saw a gradual change in sentiment towards the wider WA economy, buyer confidence rose in turn. Momentum Wealth buyer’s agents consistently reported increased competition and multiple, competitive offers on good properties.
“Compared to the start of the year, by the end of 2017 the time frame for our buyer’s agents to find and negotiate an offer on an investment-grade property has increased 40%. It is simply taking much longer to go through the process, with many investors placing offers on multiple properties before they complete their purchase. Our buyer’s agents tell us that they are now increasingly having to compete with other buyers and are sometimes finding they have to back away when the offers go above what they were willing to pay.This goes to show that there are parts of the WA market that are already on the move.”
Speaking to Shaun Strickland of the Research Division at Momentum Wealth, he also confirmed that Perth was a very different market from what is being portrayed in the mainstream media.
“Yes, Perth’s median price was down overall, but there are areas in Perth, notably highly sought after areas such as the Western suburbs near Cottesloe and Floreat, where stock is low, competition is fierce and prices have consequently risen. What is dragging Perth down are under performing areas on the urban fringe that suffered most from the oversupply of stock coming onto the market in 2014 and 2015.” Mr Strickland explained.
“We are also seeing stock levels consistently dropping, and that means that less stock is coming onto the market, including of course good investment stock, which drives up competition”.
Is it time to invest in Perth then? Mrs Everett believes it is: “As long as people perform adequate research, assess risk and do their due diligence, almost any market can be a good market. But a market that’s bottomed is of course going to give you the best short to medium term capital growth opportunities. Perth has all the signs of a market at or near the bottom right now, and we’ve already seen some positive results come out for this quarter.Perth’s long term prospects are also very good, with an economy that is diversifying and population growth that is expected to outperform most of Australia. So yes, I believe there are great opportunities in this market for savvy investors.”
Momentum Wealth is a research-driven, full-service property investment consultancy dedicated to helping clients build multi-million dollar property portfolios.
We offer a premium, advice-driven service helping clients in the planning, financing, acquisition, development and management of their residential and commercial investment properties.This holistic service offering provides a one-stop shop for clients to accelerate their wealth and reach their property investment goals sooner.
If you are interested in finding out more about the Perth market, or wish to have an obligation free chat to one of our knowledgeable buyer’s agents, contact us today.
