Sydney - Melbourne markets on the downturn - Perth Southern Hills from strength to strength

Sydney - Melbourne markets on the downturn - Perth Southern Hills from strength to strength 01/02/2016

In our December edition, I commented on how the unprecedented performance of the Sydney and Melbourne markets and my predictions on Perth being next.
Whilst some eastern seaboard commentators may see Perth remaining stagnant for 2016, the fact remains that Perth’s construction boom with 20,000 new apartments scheduled for completion by 2025 will go a long way to fill the void created by the mining sector slow down.
Furthermore, the State Government’s recent announcement of $400 million in infrastructure expenditure will further increase buying activity.
At RRE we have already seen a substantial increase in the number of transactions over the December/January period increasing substantially.
The sub $650,000 category in particular is performing strongly with properties in this sector selling on average in 45 days. Whilst I don’t expect property prices to increase to the level we saw in 2007, I am very confident we will see a 5%-10% increase by the end of 2016 with the market already showing signs of stabilising.
2015 was known as the year for buyers with properties being offered for exceptional value. These opportunities to buy at lower prices are, in my opinion, going to slowly disappear as the market shows signs of strengthening further as 2016 progresses.
 

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