After a lengthy renaissance, the Perth property market is beginning to normalise. But with around one per cent unemployment and hundreds of people arriving in Western Australia every day to service the resource boom, the outlook is still strong. The key is to keep properties turning over.
“When the property market began its strong upward swing in recent years, Perth was behind the eastern states and was playing catch up,” says Realmark Principal John Percudani. “It was undervalued so it only makes sense that it has also enjoyed a boom”.
“It probably peaked last year and over the course of the past 12 months has reached a state of equilibrium between buyers and sellers. I would say the market has normalised”
Mr Percudani believes that the market is reflecting a slight adjustment in buyer mentality, especially when it comes to “emotional” buying.
“Compared with this time last year, there are nearly 30% more properties on the market. This means buyers have plenty of stock to choose from and are not feeling the same pressure to buy in a hurry,” says Mr Percudani. “The issue of affordability is also key in the sale of property. If buyers do not see value, they are prepared to let is pass.”
This has meant that properties are sitting on the market nearly twice as long as this time last year. Mr Percudani believes sellers can avoid this outcome by reaching realistic price expectations as well as holding real estate agents accountable for the services.
“Sellers need to make sure their agents meet with them weekly and provide campaign reports. If there is no offer within 30 days, then the campaign is in crisis.”
“Sellers should not accept that it will take longer to sell their property, in fact it is imperative it sells as quickly as possible in this high volume market. The property market outlook is strong going forward, but factors such as innovative marketing are going to play an increasing role in the successful turn around of properties.
Posts
