2013 Property Outlook, The Year of the Snake

With the Chinese world recently welcoming in 2013 as the Year of the Snake, I thought it a fitting comparison to draw of the property forecast for the year ahead. The global property market has certainly receded into hibernation over the last few years however I am tipping 2013 to be the year that the Perth property market strikes back; much like the fiery reptile which marks 2013 on the Chinese calendar.Australian Property Monitors’ annual State of the Market Report recently tipped Perth house prices to increase between 5 and 7 per cent in 2013. This figure far outperformed the forecast nationally, which was a predicted increase of between 3 and 5 per cent.

This 2013 resurgence of the Perth market will likely be driven by immigration, housing shortages, steeply rising rents and a strong economy, making it a fertile market for investors and change-up buyers to enter into.

The sub $500,000 market in particular will see good capital growth prospects nation-wide in the coming months, with Perth’s strong economy and housing shortages forcing many buyers into the $500,000 plus market. Shifting demographic trends, such as double income households, and low interest rates and inflation have opened up the market to these higher priced properties, making them much more accessible for the population.

New house sales and multi-unit sales also showed good growth in the last quarter of 2012 and will continue to be popular throughout the next year.

The imminent State Election in WA, followed by the Federal Election later in the year, may cause some consumer caution in the first half of the year, with uncertainty around the short term economic future of the country. Following the Federal Election in September, however, there will be nothing holding back the Taipans of the real estate world from striking.

Admittedly, the global property market has been suffocated for the last few years by the global financial downturn but, much like a snake sheds its skin, the property market will flourish anew in 2013 and well into 2014. Strong economic growth, growing consumer confidence and high immigration will certainly see Perth property prices continue to increase with Viper speed, ensuring those with enough agility and stealth to capitalise on this opportunity a profitable few years ahead.