SIGNS of the Perth residential market bouncing back shows positivity for country residents with investments in the city.
Investing in Perth can provide a key off-farm and non-regional income stream for country people.
Alternatively, a Perth house can also act as a city base or accommodation for family while studying and working in Perth.
For those earning an income from their city investment, which they might have become more reliant on due to the agriculture industry experiencing dry conditions, a stronger Perth real estate market might just be crucial for their business.
CoreLogic's December 2019 Home Value Index reported that the decline of dwelling values remained stable from the previous month.
On an annual basis, values are slightly down by 6.8 per cent with an average median of $437,080, compared to December 2018's average of $446,011.
In recent months, the market has shown improvement, with the downturn slowing to 0.1pc for the quarter and landing stable at 0pc for the month.
With jobs growth and population growth improving in WA, coupled with low housing prices and higher migration rates, CoreLogic head of research Tim Lawless said the market could play out positively for homeowners.
"The housing value rebound was spurred on by lower mortgage rates, a relaxation in borrower serviceability assessments, improved housing affordability and renewed certainty around property taxation policies post the federal election," Mr Lawless said.
"Lower advertised stock levels persisted providing additional upwards pressure on prices amidst rising buyer activity."
The Real Estate Institute of WA (REIWA) also expects to see the Perth residential market improve, stating that the full impact of the rate cuts and tax reforms put in place during 2019 were yet to make their way to WA.
REIWA anticipated the onset of these initiatives would be seen later in 2020.
REIWA president Damien Collins said it was likely residential prices would rise in 2020.
"With the current low interest rates and Perth's population growth slowly but steadily improving, Perth's median house price could improve over the next 12 months," Mr Collins said.
"However, we do not expect this rise to be consistent across all sectors of the market."
With affordable house prices and record level low interest rates, Perth offers an ideal market for investing in residential real estate, particularly with the current strong rental market.
Analysis from REIWA anticipated further growth in the Perth rental market throughout 2020.
Mr Collins said the Perth rental market was the leader out of all capital cities in 2019, with stable median rents, reasonable leasing activity levels, declining listings and a plummeting vacancy rate to currently sit at 2.3pc.
"We are already seeing competition for good, quality stock which means we can expect this to pick up at the start of this year, and continue to gain momentum later in 2020," he said.
Since April 2017, the overall median rent price has remained at $350 per week, which REIWA claims is the longest period of stable rents in Perth since it began recording data in 2001.
"If listings continue to decrease, new build stock continues to decline and leasing volumes remain healthy, we should see the overall median rent price gradually increase," Mr Collins said.
"Perth currently has the lowest median house value of any major capital city.
"This, combined with strengthening rental conditions and the opportunity to get into good suburbs at an affordable price point, means investors are likely to re-enter the market."
According to REIWA, the top selling suburbs based on changes in sales volume were Lakelands, Mundaring, Alfred Cove and Manning, whereas the top rental suburbs were Como, South Perth, Innaloo and Morley.