By Damian Will, Sales & Marketing Manager
As we head into a new year, and a new decade, it is time once again to take stock and see what the leading indicators are telling us for the future of the Perth property market.
2019 was certainly one of the toughest on record.
We saw the perfect storm of an under-performing economy, heavy restrictions on credit and an uncertainty from consumers leading into a federal election.
We also saw building activity in Perth fall by 53% since March 2015.
However, as the new year dawns, the fundamentals in the WA economy are looking a lot more positive.
The biggest driver of building activity is population growth. It makes sense. As more people arrive in our fair city they need a place to live.
According to CommSec WA’s current annual population growth of 1% is the highest it has been in 4 years.
The mining sector is also on the up and the State Government introduced significant reforms in 2019 to kick-start the residential building market.
And while these figures all look promising, WA remains one of the most affordable states in Australia, with Perth offering up some amazing deals on land in popular suburbs.
Coupled with builders, like ourselves, operating on tight margins to remain competitive, and interest rates at record lows – 2020 can only be described as a great time to invest in Perth property.
You see, as the population continues to increase and consumer confidence continues to rise, a few things will happen quite quickly:
- Established house prices will increase
- The number of dwellings being built will increase
- Brick layers, carpenters, plasterers, plumbers, electricians etc will all increase their rates to account for the increase in demand for their services
- The price to build will increase
It seems logical right? And it will happen.
So if you have a project in mind, and you want to lock in the best price for your build, now is the time to act.
You can wait, but what you gain in peace of mind you will lose in profit margin.
If you would like some help weighing up the opportunities available to you, doing the research and looking at the numbers in detail, give us a call on (08) 9240 6020.