No doom or gloom in WA capital, says broker
The Perth property market still holds plenty of appeal for investors although a lack of quality stock is proving a stumbling block, according to experts.
Director of finance at Perth-based brokerage SMATS Services, Helen Avis (pictured above), whose clients include many expats, said there were still plenty of borrowers looking for property despite hype that “the housing market is going to crash”.
According to Avis, the Perth property market is healthy with prices “rising steadily”.
When it comes to investors, Avis, who is a 2023 Australian Mortgage Awards excellence awardee (finalist) for Pepper Money Broker of the Year – Specialist Lending, said she had received a lot of interest, with buyers from the east coast of Australia, and overseas, looking to buy in the West Australian capital.
“The majority are either people who are expats or have been expats living here, and then referrals from them, in the same demographic as them,” Avis said.
Avis, who has more than 30 years of industry experience, has also recently had several first home buyers, who are the children of clients, come to her for help when buying a property.
“There’s definitely a lot of people who probably sat on the fence for a while when interest rates started rising to see what happen.
“They may have been expecting lots of repossessions and the market to come off, but it hasn't really done that, and I think basically it’s lack of stock that has sort of forced that not to happen.
“I help people finance property all over Australia, and a common problem is lack of good stock for buyers all over, in Perth too.”
When it comes to rate rises, Avis would like to see the pause continue.
“The rate rises we've had seemed to be working in terms of the numbers that are coming out on the economy,” she said. “Hopefully we don't get any more rate rises this year. I mean, I think if we do then maybe only one. But I’m holding out for no more.”
When it comes to the future for brokers, the housing shortage continues to loom as an important issue, however banks changing their policies and forcing brokers to seek other lenders remains an ongoing issue.
“A lot of my buyers are expats and, in this space, banks are forever changing policy.”
Avis said these policy changes include altering lending ratios as well as the banks’ changing views on the borrowers’ native currencies.
“We also have a limited number of banks who can/will offer a loan. [However] for residents all banks are available.”
According to the PropTrack Listings August 2023 Report, Perth’s property market has picked up after the quieter winter months. In August, there was a 17.9% increases in new listings hitting the Perth market than in July.
“That jump contributed to a slightly busier August than is typical in Perth’s property market when compared to the past decade, though it was still a slower pace of activity than last year,” the report stated.
“That busier month of activity helped improve choice for buyers a little, though choice remains very limited overall.”
The total number of properties listed for sale in Perth increased 4% in August compared to July.
According to the PropTrack report, activity also started to pick up in regional WA ahead of spring, with 18.9% more new listings in August than in July.
Are clients showing an interest in buying Property in Perth and what do you think of the market there? Share your thoughts in the comment section below
