South West WA

The Smartline Report – August Edition

The month in review: South West WA

By Herron Todd White
August 2016

The South West is the fastest growing region in Western Australia. As the rest of the state is slowing in population growth the South West is continuing to grow and expand.

So what are the drivers of the market in the South West? The region is a very desirable place to live as it boasts amazing beaches, surf, a good climate, a relaxed lifestyle and world renowned wineries. Because of these characteristics people want to live in the region. The demographics of the people moving into the locality range from young adults who love the beaches and work in hospitality, young families who want their children to experience a relaxed, outdoor upbringing and of course the baby boomers who have reached or are getting close to retirement and want to live out the golden years away from the frenetic pace of Perth.

The increasing population has helped the property market. The Perth market has been weak for approximately 24 months and values have been declining because of a slow down in the state’s resource sector, causing significant job losses and general economic uncertainty. The South West has traditionally followed the highs and the lows of the metropolitan market, however for the first 18 months the region has been resilient and values have remained stable. It has only been in the past six months that the market has started to weaken but nowhere near the reduction in values that occurred in the Perth market. The strong population growth has been a reason for this resilience.

Another driver of the South West market is the tourism industry. With the Australian dollar weakening over the past couple of years we have seen significant numbers of interstate and international tourists visiting the region. These numbers have increased considerably in recent times which have also helped underpin the overall local economy. The upcoming expansion of the Busselton Airport to interstate and potentially international standard should also increase the number of tourists visiting the region.

Therefore on the back of an increasing population and a strong tourism industry the South West continues to be driven forward, making the long term future of the region look promising and exciting.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2016. Australian Credit Licence Number 385325

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DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.