Property owners in Perth have had to grin and bear it as the value of their assets have only fallen over the past few years, but in 2020 the WA capital's market will continue to claw back.
During the last year, the average home price has fallen by nearly 8 per cent in the Western Australia capital, with the average dwelling price at $437,080, according to CoreLogic.
Last month, the tide started to change, as property values in the city increased by 0.4 of a percentage point, the first boost in more than 18 months.
With this new data, and what The Agency has seen in Perth, it believes the local market has turned a corner.
The Agency’s latest property report highlights how it had an active October, with more than 200 exchanges in the month.
Although it does not expect to see the same level of growth as east coast capitals have, it expects 2020 to be the year Perth property returns to the black.
It anticipates property prices to stabilise and then rise slowly, which can provide attractive opportunities for long-term property investment, The Agency’s WA general manager, Stuart Cox, said.
There has been an increase in savvy buyers breaking into the Perth market recently who have noticed value in residential property, Mr Cox said.
“These buyers are especially obvious at the lower end of the market where they’re taking advantage of rising rents and increased yields.”
There has also been an increase in investors from out of state and overseas.
“We are seeing an increase in investment in the Perth market from the east coast of Australia, with investors taking advantage of the attractive property prices,” The Agency CEO Matt Lahood said.
Additionally, first home buyers have taken advantage of low house prices as it is cheaper to buy rather than rent in about one-third of Perth suburbs.