The Perth property market is no longer hot, with a major forecaster claiming Bayswater is the only area to make a national top 10 investment list.
Hotspotting claims only about a quarter (23.4 per cent) of all 278 areas assessed in Perth are deemed to be a positive, strengthening market — which was the lowest reading in the country.
About four in ten areas (42.4 per cent) were rated as negative markets, which means the local market is declining in strength.
“Greater Perth, the standout performer of the postpandemic boom, has turned decisively,” said the report.
“Listings are still finding buyers at a reasonable pace — a cycle turn, not a crash,” it said.
An area’s ranking is based only partially on the quarterly change in price, with stock levels, listings sold above the asking price, the vacancy rate and median selling days also factored in.
Hotspotting listed Bayswater as the hottest market in WA and the fifth on a national list.
It gave Bayswater a score of 72 out of 100 – well above the score of 63 for Greater Perth. Anything above 68 is deemed hot.
Property agent Jade Lippiatt said Bayswater appealed to first-home buyers as well as those looking to upgrade or downsize, as well as families and retirees.
The area enjoyed a strong local rail network that was second only to the CBD, proximity to the airport and a beautiful riverfront. It offered both character home and modern houses.
Ms Lippiatt added that Bayswater had recently cracked a record sale of $2.6 million.
Hotspotting’s Terry Ryder said Perth had undergone a “cycle rotation rather than a market collapse”.
“Listings in Perth are still finding buyers at a reasonable pace,” he said. “What’s changed is the underlying demand trend.
‘The volume signal has rolled over, so, we’re witnessing the cooling in real time.
“But it’s not a crisis. Instead, it’s a normal cycle turn happening faster than usual because disruption is hitting buyer sentiment.”