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WA Property Market Update – September 2021
Welcome to another WA property market update from McKinley Plowman – apologies for the delay on our September edition! As they say, good things come to those who wait, and we have an update that we think you’ll enjoy. As we normally do, we’ll visit the commercial and residential sectors of the WA property market, and give you some insight into how they are performing, and any opportunities contained within. Without any further ado, let’s get into it.
Commercial Property Market Update September 2021
If you read our WA property market update for August, you’ll know that retail and office assets around Perth, particularly in the CBD, are really feeling the strain in the current climate. Conversely, the industrial market is moving along very nicely. Newly minted industrial land estates in the outer metro region such as the Tonkin Highway Industrial Estate and Roe Highway Logistics Park in Kenwick have seen plenty of construction activity, however this may slow down as vacant land in those developments decreases.
Fabrication, transport, and logistics facilities are cropping up regularly, often on a design and construct basis. The increasing reliance on e-commerce in the wake of the pandemic is credited with this increase in demand for such stock, as consumers demand better delivery services and view in-person shopping less favourably than buying goods online (hence the aforementioned high vacancy rates in retail assets). Government investment in road projects such as NorthLink WA (i.e. the Tonkin Highway upgrade from Morley to Muchea) has increased interest in commercial premises in the north eastern corridor, including facilities suitable for the freight transport sector.
Residential Property Market Update September 2021
As vaccination rates increase and public confidence improves, the return to “business as usual” may be a little way off – but the residential property market in WA is still a strong performer. In the Perth metropolitan area, the median sale price continues to rise, now sitting around $520,000. Understandably, this upward pressure on price is being fuelled in part by fewer listings and lower median selling days (8,355 and 20 respectively in the September quarter). Put simply, prospective buyers are having to get in quick, put their best price forward, and potentially temper their expectations in terms of what they can get with their money. The continuation of low interest rates may be a source of comfort for many would-be homeowners and investors, however APRA’s increase on banks’ loan serviceability expectations could further reduce what the average Australian can borrow.
Even with generous Government incentives for building new homes finishing back in March, demand for vacant land continues to remain high. As a result, developments in the metro area are selling well, in-fill within established suburbs (e.g. subdivided lots) are fetching very high sale prices, and lifestyle lots in rural and semi-rural areas are shifting too.
Given we won’t see too many people migrating out of WA any time soon, plenty of West Aussies are looking to get into the market and putting yourself ahead of other buyers can be difficult. To give yourself the best chance of success, we recommend undertaking a pre-approval with the Finance team at McKinley Plowman. Our competitive tendering process will put your business in front of over 30 lenders, getting you the best deal possible for your circumstances. You can reach us on 08 9301 2200 (Joondalup), 08 9361 3300 (Victoria Park), or via our website. A recording of our recent property webinar (in conjunction with Performance Property Group) is also available to watch for free on our website.
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