The market in Western Australia has passed its “intense” cycle, with signs of comfortable conditions in the foreseeable future, the director of a property developer says.
OpenCorp director Allister Lewison says the property market in WA has long-term viability for growth.
“The intense Western Australian property cycle has come to an end. Prices have reached the bottom and we are seeing signs of a turnaround in conditions for the foreseeable future,” Mr Lewison said.
Landgate data shows Perth’s median house price rose 2.8 per cent from August 2016 to March 2017, and monthly sales volumes rose from 1,088 in December 2016 to 1,392 in February 2017.
More signs of positivity come from CoreLogic which found that gross rental yield was at 4.4 per cent.
Extra incentives provided by the state government enable first home buyers to buy property at a reduced cost.
The incentives include a First Home Owner Grant of $15,000, up from $10,000, for building or buying a new home valued at $750,000 or less; a reduction in stamp duty between $430,000 and $530,000; and the Shared Home Ownership Scheme for specific property, as detailed in a Domain report and reported on by REBpreviously.
OpenGroup anticipates that a combination of low interest rates, affordable prices and state government assistance will continue to help the WA market. It expects purchases will increase for existing homes as well as off-the-plan developments.