Positive Start in 2020 for Property Markets in WA and QLD
Last year, I predicted that the property markets in Western Australia and Queensland would start to rebound and the latest real estate figures confirm this prediction.
Corelogic figures for January 2020 reveal encouraging results for Western Australian and Queensland property owners.
In Perth, housing values are now recovering from a slump lasting five-and-a-half years, as dwelling values edged 0.1% higher over the month of January 2020.
Perth dwelling values posted their first rise over a rolling quarter (+0.4%) since a brief period of growth in May 2018.
Brisbane property prices are also on the rise with CoreLogic figures showing that property valus in Brisbane jumped 0.5% durng January 2020 and by 2% over the last quarter.
While both Sydney and Melbourne continue to lead property price growth rates in Australia with property values in these cities rising by 1.1% and 1.2% respectively during the last month. DEPPRO predicts that both the Queensland and Western Australian property markets will perfrom strongly during the coming year.
This is because of a resurgence in the mining sector which traditionally has a major influence on these two major resource based economies.
The direct impact of massive new investment on the housing sector in these states is being evidenced in regional mining towns such as Karratha in Western Australia.
For example, property figures for the resource's town of Karratha in Western Australia show that it scored the nation's biggest price hike in a single year, with median prices rising from $331,000 to $420,000.
During the mining town's peak in 2014 houses the median house price in Karratha eclipsed that of Australia's largest city, Sydney with dwellings selling for more than $800,000.
Three years later with falling commodity prices the cost of a house fell to $270,000.
However, property prices are now in recovery mode and with a raft of new Pilbara resources projects expected to come online soon creating more than 35,000 new jobs, this could further boost the Karratha property market.
As a result of this resurgence in the resources sector, DEPPRO expects property investors to become more active in major mining towns both in Western Australia and Queensland during 2020.
This trend is already underway with DEPPRO recording a rising number of tax depreciation reports being undertaken for new clients in these regional towns over the past three months.