Latest industry sentiment data shows confidence in the Perth property market is up by nine index points, making WA the second-highest of any state and territory in Australia today.
According to the ANZ/Property Council of Australia, Western Australia scored 134 index points for the September 2019 quarter. It’s up by nine index points from 125 in June quarter and only 10 points less from South Australia who made it to the top. The chart below details it.
Confidence in the Perth property market is now at six more than the national average of 128 index points. In fact, except for the Australian Capital Territory, the survey shows an increase for all states and territory.
As a whole, Australia has gone up by 13 index points, marking an improvement for the first time in over a year. The Council, on their website, puts this increase down to the general confidence in the recent federal election and the government, which is 17.8 index points– the highest level on record.
The increase in confidence for the property industry is remarkable but it is especially so for WA.
Prices of houses are declining in Perth. Data Core Logic’s research reveals WA properties are selling at losses for the first quarter of 2019. Thus, from an industry in which the state relies on for jobs and economic activity, the increase in positive sentiment couldn’t have come at a better time.
Property Council WA Executive Director Sandra Brewer said it best.
“Across the board, the results from this survey paint an encouraging picture of the outlook for property in Western Australia.”
“Our run of four quarters of declining confidence has come to an end, and all the key indicators are now pointing back in the right direction.”
Ms. Brewer said expectations for the state’s economic growth also took an upward turn and the latest data is now the highest of any jurisdiction for 12 months forward.
This is consistent with the property sector’s perception that debt finance will be available for the year ahead. For the first time in four years, confidence in the availability of debt finance is on the positive.
“These promising signs have seen a commensurate small increase in forward work schedule expectations which, if realised, will translate into more jobs for Western Australians,” she said.
“In the residential sector, we’ve seen a much more moderate, but nonetheless important shift in expectations for capital growth in house prices in the coming 12 months, which have also returned to positive territory.”
Ms. Brewer believes that the RBA’s recent cut in cash rate along with APRA’s proposed review of lending criteria all played a factor in the positive outlook of the property industry that accounts for 1.4 million jobs in the country.
Economic indicators for a booming real estate market in WA are looking up. To make sure they turn into concrete realisations, Ms. Brewer has this to say:
“The challenge now is to sustain and build on these gains with good policies and effective delivery.
“We want to work collaboratively with government to capitalise on this positive shift and the many benefits a thriving property industry can deliver to Western Australian communities.”
We hope real positive change comes out from all these and that Perth property market and the whole of Western Australia reap the benefits.
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