Off the back of a high-speed property market in 2006, Perth real estate stabilised over the past 12 months. Median prices in the western suburbs and riverside areas remained strong, but it was the smart buyers who discovered value for money in less established pockets who were the winners in 2007. And it’s time to act now in preparation for 2008.
The year 2006 was a big year in the property market. Strong demand coupled with limited supply led to a surge in real estate values. Since then the variables have changed, with a sharp increase in the number of properties on the market and subsequent stabilisation throughout 2007.
Realmark principal John Percudani describes the change in the market this past year as fairly sudden and abrupt. “The volume of stocked doubled year-on-year in 2007,” he says. “Naturally, this had an effect on prices. Overall, prices eased. But it was patchy. Not all areas behaved in the same way.”
Put off by a 30 per cent jump in median prices in the more traditional western suburbs and riverside areas of Perth, smart buyers have looked to less-established areas to fulfill their lifestyle needs. As a result, they have found excellent value for money.
“This is a growing trend where buyers are discovering the benefits of ‘newer’ pockets such as Perth’s northern coastal strip – North Beach, Watermans, Marmion and Trigg,” says Mr Percudani. “These areas are appealing for all the right reasons – great beach-front living, close proximity to amenities and bigger blocks of land.”
“In fact we achieved the highest price in Perth this year – $5 mill for a property on West Coast Drive in Trigg. Suburbs that adjoin these areas will also be ones to watch over the coming months.”
With a mixed market and plenty of stock, emphasis needs to remain on developing a marketing campaign that attracts and talks to buyers. And the team at Realmark will not be resting over the summer holiday period.
“There are genuine buyers out there deep into December and early January,” says Mr Percudani. “It is a time when both real estate agents and sellers need to be active and energized in preparation for a strong summer.”
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