Phil's Property Corner - Favourable conditions for WA buyers

July 17, 2019 by Rebecca Crommelin

Phil Bertram, the owner of Candour Property Group, brings another great issue of Phil's Property Corner on our blog this month. Phil reveals the latest property figures and the favourable signs for the WA property market and economy. 

June was a very slow month for the Perth property market, with sales activity down by 8% and leasing activity down by 19%. The median price also reduced by 1.3%, to $488,500. You can find REIWA’s June Perth market update video here.

The changes made by the RBA and APRA in May have then been followed by a drop in national consumer confidence over the month of June. The most common concerns expressed by many is the state of Australia’s economic outlook and the prospects for family finances. The result of 100.7 is just in positive territory, however the results were improved when it came to their outlook on property prices. You can read more about it in this article by the ABC. 

Interestingly, Western Australia has seen consumer confidence actually increase over the June quarter, now at the highest level in over six years. This coincides with a fair amount of positive news in the WA economy, budget surpluses and continued improvement in the mining industry. It’s slow and steady, but it is continual improvement. You can see CCIWA’s Consumer Confidence Survey for the June Quarter 2019 here.

There has been a lot of news about iron ore and lithium, however recently the prices for gold have increased to the highest in six years. This increase is being fuelled largely by demand from central banks and this price increase is predicted to drive additional activity in existing and new gold mining projects in Western Australia. All the while iron ore prices continue to climb, making a very positive impact on WA’s budget. The ABC have an article explaining the details which you can find here.

There have been significant changes in recent months to financial regulations, how banks are permitted to lend and removal of restrictions on investment lending. It’s a very good time to have your existing home loans reviewed to see what improvements can be made.

With the property market continuing to bounce along the bottom there are many opportunities to grab yourself a bargain, especially with new builds. If you’re thinking of building a home to live in or a property as an investment then there are incredibly cheap offerings by very good builders at the moment.

If you’d like discuss any of this further the next step is to chat with Phil Bertram. There is no obligation to proceed any further than you’re comfortable with and he doesn’t charge for his time. All strategies are implemented in tandem with your Mortgage Choice Mortgage Broker.

To arrange for him to call you please email him with your name and contact number on phil@candourproperty.com.au and he’ll be in touch.