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REIWA forecasts upturn in WA home building in latest sign the property market has bottomed out

Source: PerthNow

Tradies say they are starting to see an upturn in demand for their services, as the state’s peak real estate body preaches cautious optimism about improvement in the WA property market.

Both the Real Estate Institute of WA and the Housing Industry Association predict that a recent rise in residential building is here to stay.

An increase of seven percent in home dwellings construction is predicted for the next financial year.

“We’ve seen a lot of increases in quotes from most of our builders,” tradie Clayton Pinney told 7 News Perth.

Perth is now the most affordable state capital to build in and prospective homeowners are taking the plunge.

Craig Muir just received the keys to his new home in Trigg and made the decision to build because prices were low and competition high.

“They’ve delivered a great product, at a great price. It’s been a really good experience,” he told 7 News Perth.

REWIA predicts the amount of homes built in WA will continue to increase and that there will also be a rise in pre-existing homes sold in the next few months.

They say the cause is a gradual increase in WA’s population.

The forecast coincides with The Chamber of Commerce and Industry’s review, which projects WA’s economy will grow 0.9 per cent next year, and 2 per cent the year after that.

The HIA predict for the first time in three years, housing-starts will begin to increase, but we won’t see apartment developments until at least 2019.

“Buyers need to be very cautious about their expectations about what the property market in Perth might do,” REIWA president Hayden Groves said.

“There’s really no undercurrent there that suggests we’ll see double digit growth within the next 12 months.”

But real estate agents are excited.

“People should definitely get out there and have a look around, if they want to start building now is certainly a good time,” Dean Harris from Coast Homes told 7 News Perth.


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