By Damian Will, Sales & Marketing Manager
Master Builders has just released its building industry forecasts and I am pleased to say that there are signs that WA is beginning to recover.
In simple terms the two most important indicators are jobs and population, with both posting positive results in recent times.
The State economy has started to generate jobs again with 5,710 created over the year to May 2019.
The pace of population growth has also been slowly gaining momentum since bottoming out in mid-2016, with 2018 showing a net growth of 0.9%, or almost 24,000.
PERTH'S HOTTEST SUBURBS
Interestingly we are seeing more signs of Perth operating in a two-tier market, with premium suburbs outperforming the overall market.
Areas such as Leederville, Wembley and Floreat all have days on market under 3 weeks - suggesting that projects with a premium product in a quality suburb are where investors could be focusing their attention.
SO, IS IT FINALLY TIME TO ACT?
It is no secret that building activity in recent years has been on a downward trend but this will soon lead to a situation where the demand is not being met.
This, in turn, will result in house prices stablising and growing in the long term, with rental returns already on the way up.
So again I find myself saying that there are lots of macro indicators pointing to an upswing for WA.
Right now it is hard to predict exactly when that will be, so my advice to developers is to look at the premium areas, where quality homes are moving quickly and prices remain positive.
If you would like some help weighing up the opportunities available to you, doing the research and looking at the numbers in detail, give us a call on (08) 9240 6020 or send us an email.