partners for life
WA Property Market Update April 2023
The end of April sees us into the second quarter of 2023, and the easing of interest rate rises may well bring a greater sense of certainty to the WA Property Market. Some would-be sellers held off listing their property for sale throughout 2022 as a result of uncertainty around where rate rises would end. Now that they appear to have stabilised somewhat (with probably only one more increase expected over coming months), we might see the number of listings increase. A greater number of properties on the market may put downward pressure on prices, however this could be tempered with the remaining high interest rates, effectively reducing the amount of money would-be home buyers are able to borrow. Tenants leaving the rental market to snap up available affordable properties may also impact the number of houses available for owner-occupiers and investors. Here’s our WA Property Market update for April 2023.
WA Residential Property Market Update April 2023
As expected, the data available for the residential market reflects a shift away from new builds in Perth’s suburbs. Ever-rising construction costs and long wait times has seen homebuyers look to established properties and newly built homes where possible, oftentimes to move out of a rental and into their own home. The demand for good quality, established properties has seen values hold strong, even in the face of rising interest rates and property market turmoil in some Eastern States cities. Investors are buying up units, apartments, and family homes alike to take advantage of the tight rental market, with many homes taking only a few days to sell.
Growth is continuing through many pockets of Perth, with established stock being preferred by investors. Rental yields are strong – yet more great news for those holding investment properties (or those with the means to purchase one), but tough times continue for tenants with prices being pushed up. This environment is also prevalent in country WA, often to an even greater extent. Rental yields of 8.1% are being seen in the likes of Kununurra, with strong demand from companies and government agencies looking for rental properties to house staff, but stock is sorely lacking. This has created an appetising situation for investors, who stand to enjoy very strong returns should they be able to secure a property to rent out.
WA Office Property Market Update April 2023
As businesses adopt hybrid working from home structures for their employees, there has been a push for smaller office spaces across Perth. Office vacancy rates are down, thanks to increased interest from mining sector and professional services businesses to get into new premises, indicating the beginnings of a recovery in the office property market. Staff amenities, environmental sustainability and energy efficiency are high on the list of demands for prospective tenants, prompting some landlords to renovate/retrofit office spaces to meet expectations.
Purchase activity in the office property market is shifting to cater to demand for small spaces, with limited transactions for large-scale offices in the last 12 months or so. This is the case both for owner-occupiers and investors alike. Interest rate rises will also have an impact on investments in office assets, however this may take some time to reveal itself fully.
As interest rate rises soften, and banks pass them on to borrowers, there are opportunities available for refinancing. Homeowners who have been enjoying fixed-rate loans may also be nearing the end of that period of insulation from rate rises, and could soon find themselves in a position where monthly repayments have skyrocketed (see our recent article on that here). The Finance team at McKinley Plowman can review your loans, and work on your behalf to secure you a better deal where possible – and what’s more, our competitive tendering process is complimentary! Contact us today on 08 9301 2200 or get in touch via our website.
Data from: HTW Month in Review April 2023
Thinking about becoming a client?
Book your free, no obligation consultation right now via our online booking system or get in touch to find out more
Already a client and want to get in touch?
Send us an email via our enquiry form or give us a call today