New Report Gives Good News

Perth's longer suffering property owners have been delivered some good news with key economic group BIS Oxford Economics, suggesting the four year dip has come to an end.

“House prices in the Perth market appear to be bottoming out,” Angie Zigomanis of BIS said this week, pointing to stronger overseas migration and a reduction in the number of West Australians moving interstate.

Additionally tightening on investor lending and rising levels of new houses is weighing on the residential market, according to the new report, Residential Property Prospects 2018 to 2021.

But the road to recovery will be a "long, slow grind", according to the report.

In its most recent report, BIS Oxford Economics predicts house prices across the country will remain flat.

Perth's median house price in June was $520,000. Since 2014 prices have declined by 13 per cent so any suggestion the slump may have come to an end would be welcome news.

Perth’s vacancy rate also remains high at 5.1 per cent and rent prices have collapsed, falling by up to 30 per since since 2013.

The report predicted the recovery of the Perth market would be a “long, slow grind as the city has to work through a significant oversupply…”

House prices are expected to keep up with inflation over the next three years, growing by about 10 per cent, while unit prices are forecast to rise by just 5 per cent.

"Minimal growth is forecast in 2018-19 and 2019-20, before some stronger growth emerges towards the end of the forecast period in 2020-21, with total growth in the median house price of 10 per cent forecast in the three years to June 2021, or just keeping up with inflation," the report said.

Via WAToday