South West WA September 2018

The month in review: South West WA

By Herron Todd White
September 2018

The residential sector of the South West of WA property market is emerging from the winter with cautious optimism for a strengthening economy.

The number of sales has reduced over the past six months, however the value of average property transactions appears to be stabilizing. Specific increased economic activity at the lithium mine at Greenbushes is resulting in an increasing number of enquiries and a number of quality homes have attracted robust enquiries which have marginally improved values. Real estate agencies are chasing stock but report that the key element to successful sales is ensuring that vendors have realistic expectations and are prepared to meet the market.

Over supply of land in many of the expanding subdivision suburbs around Bunbury, including Dalyellup, Millbridge and Australiand, is subduing value with pockets of decline in some areas. However, with the arrival of the warmer spring weather it’s possible to assess that the poor performing markets in these areas may be bottoming out. Older stock of housing in historic parts of Bunbury and South Bunbury are holding their values and returning confidence to the market which is resulting in some quality renovations which are adding value.

Sales of rural lifestyle properties in the region up to 40 hectares are stable but with limited transactions being recorded. Properties with generous dams are certainly more appealing as the recently rebranded Southern Forests region around Manjimup and Pemberton is witnessing a resurgence of fruit and vegetable planting as the market for fresh produce continues to strengthen.

The popular seasonal tourist towns of Margaret River, Dunsborough and Busselton all look forward to improved economic activity as the summer arrives, which gives the region an opportunity to showcase the appealing lifestyle which has historically improved the performance of the residential property sector.

Here’s hoping with the perceived improving optimism in the region that the summer of 2018/19 will continue to strengthen the residential housing market.

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