Dale Alcock agrees with Premier Mark McGowan's positive sentiments on the housing market
Dale applauds Premier’s sentiments
Dale Alcock, the Managing Director of ABN Group, Australia’s leading construction, property and finance company, has welcomed WA Premier Mark McGowan’s views on the state’s housing market.
The Premier’s message to West Australians to ‘buy a house now because the good times are coming back’ has been applauded by Mr Alcock, who says a combination of buoyant job prospects, increased wage growth, and promising signs in various sectors of the economy, including agriculture and mining, all point to an upturn in the property market.
“Certainly this cycle has been different to most, as it’s been flat for around four years now, but I take confidence from the Premier saying there’s an upturn in sight as that very much aligns with our own predictions,” says Mr Alcock.
“The signs are very much there, in particular with increasing employment in mining, mining services and agriculture, where there is currently a bumper harvest going on at the moment.”
Data released this month shows the State’s domestic economy expanded 1.1 per cent in 2017-18, a significant turnaround after plummeting 7.1 per cent in 2016-17 and following four consecutive years of decline.
“Consumer sentiment is a crucial factor here, and the fact that the Premier is saying every day you can see positive signs that the economy is turning round, and as a consequence now is a good time to buy, is very significant.
“And another point to make is that nationally the Perth housing market is looking very cheap right now, particularly in comparison to Sydney and Melbourne.”
Mr Alcock also refers to the positive news of renewed activity in the mining sector, which has continued throughout 2018. This has seen Rio Tinto, Fortescue Metals Group and BHP all announcing new iron ore projects, in addition to the State now having seven lithium mines in operation, with a second $1 billion lithium processing plant on the way near Bunbury.
“Mining industry leaders themselves are also taking an optimistic view of the future, predicting 12 months of steady consolidation and growth ahead, which in turn points to a renewed confidence that will have a flow-on effect for the local economy,” Mr Alcock adds.
“In fact, at some point over the next couple of years I believe there will be another labour shortage, which will lead to a kick-off in overseas and interstate migration, which is another reason why the time to build a home is now and not later.
“Whether you are considering building your own new home, renovating your current home or dipping your toe into property development as an investor, the time is now.
“All the signs are there that Perth has reached the bottom of the market, and now the only way is up, which is very exciting,” concluded Mr Alcock.