The Perth housing market is tipped to be among Australia’s top performing capital cities right up to 2020, according to a recent home value forecast by Core Logic–Moodys. The forecast also predicts a rise in Perth apartment values of 5.6% this year, with continued growth through to 2020.
BIS Oxford Economics is also upbeat about prospects for the Perth property market, predicting that prices will enter a growth phase next year, which will also persist through to 2020.
When looking at future growth prospects, it’s a good idea to see how we are travelling right now. That means examining factors that drive demand and generate property price growth. This includes more jobs and higher wage rises, low interest rates, consumer confidence, affordability, population increases and a balance between buyer demand and the supply of homes for sale.
More jobs and higher wages encourage more people to buy their own home. May’s employment figures show about 4300 new jobs were created in WA and a State Government Treasury forecast points to wage growth doubling in 2018/19.
Today’s low interest rates are one of the main factors boosting buyer demand. There’s also signs that the oversupply of homes listed for sale in WA is trending downwards, with affordability in the Perth market being the best it has been in the past few years.
Consumer confidence is also showing encouraging signs. A recent survey from the Chamber of Commerce and Industries in WA showed that short and medium term consumer confidence in WA improved during the March 2017 quarter.
WA’s State Treasury forecasts healthy growth in GDP of above 3% a year from 2018/19. It also sees a growth in WA’s population of almost 130,000 by June 2020.
So, it seems there are rays of light in the future, but one thing is clear; it’s always necessary to take a long-term view. If you wait for a guarantee that the market has reached its most affordable point, then you may already have missed a good opportunity to buy well.