Southwest WA Property Market Update February 2020

The last quarter of 2019 saw the number of sales across much of the major South West towns spike. Compared to the same time in 2018, this was a significant increase in activity. While much of this could be seasonal, particularly for the holiday hot spots of Busselton, Dunsborough and Margaret River, agents are cautiously optimistic. As valuers however, we tend to be a bit more circumspect and we have seen these grass roots start before and come to very little. The general feeling is that the market has stabilised and yes, we have passed the bottom of the market but it could still be a long slow recovery and any significant increases in value may still be a long way off.

The major residential subdivisions such as Treendale, Dalyellup, Brookfield, Provence and Vasse Newtown are at a level now where they have become very affordable. The number of sales in these areas has increased significantly.

The Dunsborough Lakes market is poised for some potential growth given that the subdivision is quickly running out of new land with less than two years of future land stock available. Once this has been exhausted it could be a while before another significant subdivision development enters the market. This would put a squeeze on supply and therefore one would assume that this would place upward pressure on values.

A major development this year will be the commencement in March of direct flights from Melbourne to the Margaret River – Busselton Airport. This could have a significant impact on tourism and potentially provide an economic boost to the region. This may have a flow on effect to the short stay residential market.