WA Property Market Update – November 2020
While other parts of the country, and indeed the world, continue to get to grips with COVID-19, Western Australia remains relatively untouched and is enjoying the lead up to summer with just about 100% “normality”. So, if our lifestyles are anything to go by, things are looking up – but what’s to be said about the WA property market? Can we carry over the same optimism? Let’s find out…
Building on a strong last few months, the WA residential market, particularly in Perth, continues to perform well and perpetuate the recovery we’ve been seeing since the market appeared to “bottom out” over the past couple of years. Of particular interest is the higher-end prestige sector, with plenty of notable properties selling in the $1 million-plus bracket over the past couple of months – some of which had been on the market for some time. The general consensus is that WA’s hard border and the return of WA residents during the COVID-19 pandemic have placed upward pressure on demand, a trend which is also present in other sectors.
The residential rental market is still tightening, with rental listings 50% less than the same time last year, reflecting the high demand for rental properties. The current vacancy rate in WA also sits at 0.96%, with the immediate future not looking too much brighter in that regard. As an expected result of high demand and low stock, prices are being pushed up, with some suburbs around Perth seeing increases of up to 3.8% to their median weekly rent. Many properties listed for rent are leased within just a few days according to some real estate agents, a trend which is expected to continue given present circumstances.
While there is plenty to talk about in the residential space, both positive and negative, commercial property in WA paints a slightly different picture. The commercial market currently has an over-supply of available properties, and remains at the bottom of the property cycle. However, due to WA’s favourable response to the COVID-19 pandemic and the resilience of the mining sector, leasing activity for commercial property has started to pick back up after a slump earlier in the year. Rental rates have remained fairly steady since the start of the pandemic, however it is unclear at this stage how that could change (if at all) once the economy is fully up and running again – whenever that might be.
The Bottom Line
As we’ve covered recently, now is a fantastic time to get in the door if you’re in a position to purchase property. Whether it’s for investment or an owner-occupier situation, many lenders are offering unprecedented rates, further sweetening the pot for prospective buyers.
At McKinley Plowman, our borrowing power assessment can show you how much you’re able to borrow, and our competitive tendering process puts your business in front of lenders and gets you the best deal for your circumstances. Our attention to detail and extensive knowledge of the finance industry has helped our clients achieve great things, and we look forward to seeing what we can do for you as well.
If it’s about time you explored your options, give the McKinley Plowman Finance team a call on 08 9301 2200 or visit www.mckinleyplowman.com.au/contact-us/ for a free initial consultation.
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