Buyers and renters should be thoroughly enjoying the current property market.
This is the opinion of Bankwest’s chief economist Alan Langford who presented the South West Property Market and Economic Update seminar in Bunbury a fortnight ago.
“Population growth has slowed from four per cent a year to a little over one per cent a year,” he said.
“We are in the unprecedented situation where Victoria’s population growth is faster than Western Australia’s.”
Mr Langford said the situation started 10 years ago with data from the Real Estate Institute of Western Australia shows median house prices rose 85 per cent in the three years to 2006 while the Consumer Price Index rose just 10 per cent and weekly earnings grew 21 per cent.
“Bunbury property prices grew exponentially during that period and now they seem a bit over-inflated,” he said.
“This year so far, 45 per cent of vendors have discounted the advertised price of their house while it’s on the market to secure a sale.
“The situation increases in Busselton where prices rose 160 per cent in the years between 2003 and 2006 and currently 70.1 per cent of owners have to discount to make a sale.”
Mr Langford said Collie bucks the trend of high property prices with the average house price falling from $265,000 to $212,000 in five years to March 2016.
On the rental side of the market, Mr Langford said residential rental vacancy rates in Bunbury were 5.6 per cent in March 2016 which is about two per cent above average since 1960.
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