WEST GOES BANANAS

PERTH PROPERTY GOES BANANAS

West Australia is now officially going bananas in the property market. With a doubling of real estate prices to purchase since COVID 2019 responding to stimulus packages, interest rates drops, government grants, immigration, property policies to support strong continued growth to super charge the biggest purchase of anyone’s lifetime.

Low Supply Big Demand
Currently below 3000 homes on the market at any one time this year, normally 12,000 – 15,000 is a balance market with a 60 days rollover being 6 cycles during the year for 70 – 90,000 transactions. This includes off the plan with developments pre-selling projects in a ‘healthy market’.

With a market that is like the bananas in COVID
Limited stock Bananas went to $15 a kilo with buyers across Australia complaining for improvement in production for supply. The similarities are the same but production is not improving with limited supply in WA.

A healthy property market is needed with 8000 real estate representatives state-wide in 1200 agencies having good stock levels giving opportunity for listings to sell to make a living. With 3000 properties only available for sale there is major agent competition chasing down sellers.

Massive Migration
Over the last 3 years 150,000 people have moved to Perth metro & regional areas of Western Australia. Adding approximately another 25,000 national relocations from around Australia moving to the west. That makes for nearly 200,000 extra people settling in WA increasing the population by nearly 10%. That’s 3 stadiums full of new WA fans.

It’s alot of new money to the state which is a positive thing for the economy but the numbers just does not work for accommodation in residential needs.

Rentals Reeling
Total of 280,000 properties available to rent in WA. Under 1% vacancy with hundreds of applications per listing. Rents have risen by 45% over the last 3 years $800 week average rental costs with $110+ day for rent is now normal. Multiple rental properties with common areas, rooms for rent once rare now also normal.

What does this mean in the coming 2026..

Sellers holding back
It could be simple as a basic human trait that when selling people wait to see how high the prices will go before they list to sell. Based on 3000 every 60 days compared to 10,000 over a 2 year period it could be a ball par number of 50,000+ over the past 2 years. If they all came on the market next year in FOMO [Fear Of Missing Out] mode + the 20k normal listings the market would get swamped. Becoming the opposite a ‘Buyer Market’. Prices going flat even falling to make deals.

High End Residents
People are coming from all around the world discovering just how good it is is to live in Perth & the secret of Sunset Coast Life is well & truly out there. Many new residents are well funded, business properties’, high middle class of there originating countries coming to WA for a better life. Also a few thousand refugees taken from the war zones for humanitarian support.

It is probable for more growth in the luxury market which to the average local person watching the market grow is amazing. Prestige property was $1.5 million in 2010 now 3 million is becoming the new normal base pricing on well position properties, costal, river side, elevated prestige properties. The super deluxe top end properties will be several to 10’s of millions where the wealthy people in the country & around the world see Perth as a great value place buy, develop, make a modern uber lifestyle in Perth.

Is Real Art coming…?

https://www.youtube.com/shorts/P5yZbNIyXFc?t=60&feature=share

CONTROLLED GROWTH
Inflation, government promises, national concepts, its all not really working. Local governing bodies are not coming up with any practical solution, actions to building, developing, releases, for increasing affordable living for 1st home buyers, young families, downsizers not in strong financial positions.

If a subdivision, development, proposed extra property is put forward for shire & governing bodies for approval even the simplest rear back yard battle axe which is the most basic to create a rear block to build lot 2. This takes 6 – 9 months turn around for the paperwork. Given around 25,000 home are built each year this number could have potential for increased production annually. WA is still a Wait Awhile state in this area of due process.

INNOVATION
Interestingly he world is in overdrive with innovation around building with printing homes, modular homes, capsules, tiny homes. panelled properties, shed homes. container conversions, pre fabricated homes, smart home tech, eco homes, kit homes, self healing concrete + many more. Mainly for the low end affordable living market.

With more land than most countries available, shires with excessive land areas banked, old sites of industrial, commercial on hold, natural recourses for building along with weather that allow for 9 months of the year productive building. Its a mystery of why the multiple streams of real estate revolution is not happening in WA.

REAL INCOME
With a daily, weekly, push on residential property the state revenue of 3.5% stamp duty is at its highest per property being medium price $800k = $28,000 x 25,000 transactions per year = $700,000,000 + commercial, businesses, the billion dollar WA property boom is good for government coffers.

This average price of property in Perth has passed the $700k which is above 1st home buyer peak price available for concession on stamp duty. So the market is so hot the math is not working in this area even after raising the limit. With 100 buyers per property making dozens of offers on every sale its going to be an interesting next year in 2026. As everything peaks over summer to a million dollar average home price in half of WA suburbs. It seems like a Bitcoin share rising like a raging bull with an ongoing possibility of a crash or back step a few years in growth with a market swing.

REAL ROLLER COASTER
Over the last 200 years there is a proven property cycles very 8 -9 years then 16-18. These minor & major cycles have been consistent for over a century since the selling of land or title began. But the last 6 years has been completely unique with multiple manipulations to the real estate roller coaster. Its been modified, increased in speed, more seats added, changes to the track, ticket pricing, promotion, government, industry influences.

This has made for a more exciting but dangerous ride on the speed, ups, downs, twists, turns, with the safe ending. However its still mechanically the same with an operation system or process that is suppose to be reasonably predictable. It will be an experience of anticipation, anxiousness, fear, excitement, exhilaration, a ride of a lifetime. We are all hoping the roller coaster influencer’s, operators know what they are doing as the public can only trust this is all going to Ok with a good outcome.

Keep up to date with your local property guys who have been around & seen a couple of cycles. Good advice before you buy or sell is always a smart idea for a wise deal.

Feature by sponsor mres.com.au

Associated sites
realdeal.com.au
landwatch.net.au
proscouts.net.au

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