Perth 2023 Property Prediction

If buyer enquiries over the Christmas/New Year break are anything to go by Perth homes are still in very high demand.  With homeowners not in a hurry to list their property, the scales of supply and demand are still heavily weighted in favour of the seller.

I predict that Perth home prices will again increase this year by at least 6% and outperform the rest of Australia in 2023. The charge by Eastern States investors began October/November 2022 and will continue, being led by New South Wales and Victoria investors seeking the lowest home prices in Australia and the tightest rental market still at 0.6%.

Our modelling shows that the best bang for a savvy investor's buck is Midland and the surrounding suburbs, with proximity to the airport, easy access to the City, increasing redevelopment, quality shopping, and the largest Bunnings in WA. Bunnings know it's growing hub and getting bigger.

With a shortage of labour and the inability for builders to build homes quicker than the population increases, I cannot see when the pressure will end but I can suggest how the pressure can be released.  

If Government would reduce or alleviate stamp duty altogether for downsizers as this sector of the market is clogging the ability for families to buy larger homes which are now occupied by only two people, this would oil the top of the pyramid and allow families to move up. 

The other is incentivising investors with no or reduced stamp duty if they purchase a property and rent it for at least 3 years.

Suburb to Watch out for: Scarborough (always a favourite of mine), Karrinyup (amazingly located and great bang for your buck), South City Beach (a sleepy hollow on 300 homes, better positioned & priced than Swanbourne & Cottesloe), Coogee (amazing location, under appreciated & under-priced)

Paulette says: What to watch in 2023:

Stamp Duty: In 2023, the First Home Buyer Choice policy in New South Wales is expected to be a major factor in the real estate market. This policy allows first-time home buyers to enter the market by paying an annual property tax of $1900 instead of having to save an additional $40,000 to cover stamp duty on a $1 million property in Sydney. It remains to be seen how this policy will impact the level of buyer activity in New South Wales and whether other states will adopt similar policies.

Investor Support:  Since 2015, there has been a significant rental crisis in this country, and it is unclear which level of government (federal, state, or local) has the determination to take necessary actions to support rental property owners and alleviate pressure on rental markets.