Perth property on rise as economy powers up
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This new five-bedroom family home on Viking Rd, Dalkeith, was listed this week for $4.65m. Inquiries: AREA>.
PERTH'S residential property market has bottomed and its prestige suburbs are seeing renewed buyer interest, and even sales at higher than expected prices.
The prestigious western suburbs, which include Cottesloe, City Beach, Claremont, Mosman Park, Dalkeith and Peppermint Grove, had taken a 20per cent to 30 per cent cut in prices when the global financial crisis hit and there was little activity or interest while the economic uncertainty played out.
But anecdotal evidence from agents shows the price falls in expensive property have given upgraders the opportunity to move into desirable areas, which foreign buyers and expats also favour. Those who have weathered the GFC and benefited from the recent sharemarket increases have cheaper property and $1 million plus homes on their radar.
In June, the Real Estate Institute of Western Australia noted that there was a 40 per cent increase in sales in the western suburbs.
Since then the market has again changed and bargain hunters may find it a lot harder now, with less discounting, fewer good properties and sellers gaining more power.
Gavin Hegney, principal of valuer Hegney Property Group, says the market hit bottom three to four months ago and there is increased confidence in jobs thanks to the big offshore Gorgon gas project.
People are more comfortable with the employment climate and feel less likely to lose their jobs.
Since June there also has been the rise in the sharemarket, which he says affects top-end buyers more than interest rates.
