West showing signs of a resurgence

Perth’s top-end property market is showing signs of life and more vendors are capitalising on demand from cashed-up investors.

CoreLogic’s Eliza Owen

The top end of Perth’s property market is showing signs of life and more vendors are capitalising on demand from cashed-up investors.

The WA capital has come out off the bottom of a prolonged price slump that began with the collapse of the mining sector in 2014.

It is a rule of thumb in east coast markets that luxe property leads the market out of the downturn, but CoreLogic’s head of research, Eliza Owen, said Perth was more of a “mixed bag”.

“The Perth property market looks to be moving through the cyclic trough, and into the upswing of its cycle. For the past three months, dwelling values have not fallen. Rents are on the rise and employment and ­migration patterns are slowly ­improving,” Ms Owen said.

Price growth in the quarter to January was up 0.4 per cent in Perth, with the top end moving higher with gains of 0.8 per cent. But with confidence and stock levels at lows, it may take a while for the market to take off after five years of declines.

“Sellers are likely to hold off until further price gains are seen, and those selling at the moment might be those that are under more pressure to sell now because of personal circumstances,” Ms Owen added.

Nine big-ticket sales were made in sought-after suburbs Dalkeith, Swanbourne, Cottesloe, Nedlands and City Beach during the seasonally quiet December and January months, ranging from $2m to $4.6m, according to realestate.com.au.

These suburbs are also drawing the eyes of prospective buyers. Data from the property classifieds site shows homes taken to market in Perth’s inner suburbs achieved 2000 views per listing on average last month, strides ahead of the outer suburbs, which averaged 500 views per listing.

Former Irish racehorse trainer David O’Brien and wife Catherine are selling their waterfront home at Dalkeith. They moved into the six-bedroom home on the edge of the Swan River more than a decade ago and are selling now that their children are older. The home’s aesthetic was inspired by Frank Lloyd Wright’s Fallingwater design, drawing on glass to embrace nature and water vistas.

Ray White Cottesloe Mosman Park owner Jody Fewster expects the home will attract a local buyer or expat with ties to Perth. Alternatively, the positive feng shui of the home may appeal to the discerning Chinese investor.

“Given the run on the equity market and the fact we have historically lower interest rates, I think people are looking for opportunities to park wealth,” Ms Fewster said. “So, I’m very bullish and very positive about the luxury market for this year.”