- 44% feel positive about purchasing property in the Perth market
- Investors' positivity has also increased
- Como was the most desired suburb in Perth
Consumers remain positive about the Perth property market despite the ending of stimulus, according to the Urban Development Institute of Australia (UDIA) and Ubris Home Purchaser Sentiment Survey.
44% feel positive about purchasing property in the current Perth market, while 69% expect prices to rise within the next six months.
Of those who are current owner-occupiers, 58% are positive.
Since the survey was last conducted in August 2020, positivity has increased among investors to 41% (+3%).
UDIA WA CEO, Tanya Steinbeck, said enticing investors back into the WA market is critical.
“Due to longer term issues such as the Foreign Buyers Surcharge, as well as newer barriers such as the hard border closures, the Western Australian market has lost a significant portion of investors to other states or countries,” Ms Steinbeck said.
“It is good to see that the word is getting out about the benefits of investing in Perth, given affordable prices and strong rental demand. Investors are critical to adding much needed supply to the rental market as well as stimulating ongoing activity in the market.”
Tanya Steinbeck, UDIA WA CEO
Sentiment across the capital cities is similar to Perth – Melbourne recorded 44%, Sydney 45% and Brisbane 40%.
Although the sentiment is high, the number of people likely to buy within the next 12 months has fallen. Ms Steinbeck said this was probably because respondents were influenced by fiscal stimulus during the survey period.
“It could also be a sign that potential buyers are looking to wait a little longer, as responses suggest that while consumers are expecting prices to increase in the next 6-12 months, 34% are expecting price decreases in the next 18 months,” Ms Steinbeck said.
“Some may be holding out to see what happens in the market during that time frame.”
The survey also explored the suburbs respondents wish to live in.
Como emerged as the top-ranking suburb, with neighbouring South Perth – which was the top suburb last year – in second place.
All top ten suburbs are well known with several middle ring inclusions such as Applecross and Victoria Park along with coastal suburbs from Fremantle to Hillarys.
The top ten suburbs
- South Perth
- North Perth
- Victoria Park
The sticky suburbs – where people already live but still want to buy in – are more diverse.
- North Perth
- Cockburn Central
- East Perth
“The stability of these results is despite some speculation that COVID-19 could make apartment living less desirable,” said Urbis Director David Cresp.
“The survey also highlighted that when people are looking to move and choosing what suburb they want to live in, key decision-making factors are the type of house they want to live in and the level of amenity that the suburb offers.”
“For people most interested in living in an apartment, Perth and East Perth were the top ranking suburbs, and for people interested in a free-standing house, South Perth ranked the highest.
David Cresp, Urbis Director