how is the WA housing market faring?
With the afterglow of the mining boom fading from memory, it seems that the property market in Western Australia is set to return to levels that are more normal than recent highs. So, what does this mean for you? Well, it could be time to demolish and build in Perth, rather than just established real estate.
According to the Real Estate Institute of Western Australia (REIWA), sales in Perth were down 11 per cent in the week to May 20, from the same time a year. SQM Research also shows that while prices have been fairly flat over the last few weeks, there has been a 2.8 per cent decrease in house prices over the year to May 19, with units falling 1.6 per cent.
Taking a long term approach to the market, the three year change is much more positive, with houses increasing in value 7 per cent and units by 8.1 per cent. While real estate seems to always be a safe bet in the long run, the short term fluctuations in price can be unpredictable, meaning buyers can often be caught out paying too much for a property.
Fortunately with a new two storey house design, you are paying a fixed price that is not related to the whims and fancies of the real estate market. Better yet, for those that own real estate in Perth and who are looking to upgrade, you can retain the accumulated equity in your land by demolishing the existing house and replacing it with a brand new home from apg.
Those in a position to do this could get the best of both worlds, taking advantage of a fixed contract in a market where house and land prices are uncertain, as well as gaining a brand new house with more living space and modern features, such as open plan living, and perhaps even a Mypod for good measure.