Powered by MOMENTUM MEDIA
realestatebusiness logo
Subscribe to our newsletter SIGN UP

Perth property growth to remain weak

09 March 2015 Staff Reporter

Perth is set for a “prolonged slump” due to an oversupply of property and a weak economy, according to one market analyst.

Simon Pressley from Propertyology said Perth sales volumes peaked two years ago and the numbers since have steadily declined.

The level of new supply in the pipeline is at record levels, while Perth already has the highest vacancy rates of all Australian capital cities, he added.

“Propertyology’s reading of key metrics suggests that Perth property values are likely to end this year below where they started the year,” Mr Pressley said.

“Put simply, neither property values nor rents have any pressure currently being applied.”

Mr Pressley said the bigger concern for Perth is around demand, since there has been a sharp decline in the number of people relocating to the city in the past 12 to 18 months.

He also noted that Perth’s economy has been struggling due to falling iron ore prices and the dearth of new mining projects.

“To the current state government’s credit, there are an unprecedented number of large projects in metropolitan Perth,” Mr Pressley said.

“These big projects will ensure that new jobs will continue to be created in Perth. But the rate of job growth has definitely slowed down and government finances are likely to remain tight for some time.”

Mr Pressley said it would be wrong to think that Perth was experiencing nothing more than a lull.

“Something significant will need to come from left field to stimulate housing demand, otherwise Perth looks headed for a prolonged slump,” he said.

Perth property growth to remain weak
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

What is the worst mistake vendors make?

Price too high
Taking low offers too personally
Neglecting curb appeal
Not ‘staging’ the home for sale
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.