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WA Property Market Update June 2023
The cold weather is upon us here in WA, and the property market certainly hasn’t bucked the trend by warming up. The RBA’s interest rate rises in May and June caught quite a few off-guard, especially as even many of the most conservative commentators predicted at least a minor reprieve. The knock-on impact of this to cost of living pressures and consumer confidence means that not only is there still limited stock in the residential and retail property markets, but there is also less money available to throw around while this uncertainty prevails. Let’s have a look at the markets in WA as we wrap up the 2022-23 financial year.
WA Residential Property Market Update June 2023
There seems to be no impending relief for homeowners or tenants at the moment. Rising interest rates are putting upward pressure on mortgage repayments, while tenants combat sustained high weekly rental prices as a result of demand continuing to far exceed supply. This is reflected in WA property market data, with median selling days dropping to 12, with listings falling to 3,887 for the June quarter. Looking at rental data, median weekly rent for houses has risen a further $10 per week to $560, and units have increased $20 per week to $500. Until more stock hits the market, construction pressures ease, and interest rates level off, it seems likely that the current state of play will stick around.
WA Retail Property Market Update June 2023
Rising cost of living pressures and interest rate increases have also had an impact on the retail property market in WA. New construction activity has been somewhat dampened by the fact that consumer spending and confidence has taken a bit of a hit given present economic circumstances. This is due in part to the fact that for many West Australians, savings accumulated over the pandemic and lockdown period have been eroded as a result of paying more for mortgage repayments, bills and other essentials in recent times. Construction cost and timeline blowouts have also hit the retail sector, however there are key projects underway or recently completed. Westfield Booragoon (Garden City) has received the green light for a $720 million expansion, following Karrinyup’s $800 million expansion launched last year.
Investor demand continues to come from the Eastern States, with strong yields and sale prices despite current conditions. That being said, it is difficult to predict with any certainty what the next year or so will look like.
In spite of the current market conditions, there are still positive steps you can take with your home loan. Particularly as fixed-rate periods come to their end, many borrowers are looking to refinance in order to get ahead of potentially massive increases to their home loan repayments. The Finance team at McKinley Plowman have been working hard to save clients on their repayments, in some cases thousands of dollars, so we’re excited to see what we can do for you too. Give us a call today on (08) 9301 2200, or contact us via our website.
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