He voiced these concerns while speaking at a recent API industry event, highlighting the experiences of desperate tenants, ambitious lessors and sellers, as well as distressed real estate professionals.
“The stock levels for residential listings and rentals are historically low, sparking anxiety and stress across the WA property landscape.”
Properties are selling at a record speed, dropping from medium selling days of over 80 days in 2019 to under eight days in 2024.
“This raises a question of whether properties are being sold in a manner that is fair to buyers and ensures the best sale price result for vendors,” he said.
“Evidence from Realmark research suggests properties are often being undersold on price regardless of the market conditions and that a strategic sales approach delivers a better result for all parties.
“First home buyers are also being challenged in this market by the affordability, with the median house price being over $600,000, and the competition they have with investors mainly from the east coast.
“To be better off than renting, first home buyers require more than a 12% deposit, however, the increasing median price and stamp duty is making this more difficult.
Mr Percudani said that east coast investor interest in WA was strongly motivated by yields, but he encouraged investors to take a longer term view.
“They should be undertaking a balanced assessment based on asset quality, capital growth, and appreciation as well to ensure they are making the correct investment decisions in evolving market cycles,” he said.
“Apartment sales have been rising in both sales volume and sale price. Traditionally, they lag house sales on both fronts, but due to the lack of supply, buyers are defaulting to apartments.
“This is concerning as a balanced variety of housing types is essential for a viable and healthy property market to be sustained.”
For more information or to speak to your local real estate professionals contact Realmark on 9328 0999.