Has WA hit rock bottom?
Samantha Reece of PropertyESP attended an interesting lunch this week with Mark Pownall of WA Business News.
The topic of the lunch was WA’s current business scene and how the state was positioned in the current economic climate.
Certainly some of the information on property sales and building pipeline that Mark shared with us showed that Perth was coming off a relatively strong high.
But the signs are there that we are once again moving through a cycle. We reached a peak in 2014 – and we believe the trend will improve again in the medium-term.
Although population growth has slowed from the highs of 2011/2012, in the past ten years Perth has grown from a city of 1.5 million to over 2 million. Mark was confident that some of those migrants would stay regardless of the changes to the mining sector and look for work in other sectors.
There was further good news, with commodity prices for iron ore having risen in recent weeks. Gold is also once again championing the cause for WA, as is LNG.
WA has come a long way in the past decade and we are now poised for the next cycle.
With the skyline filled with cranes and $24 billion of Government infrastructure being built, there are positive signs that we will come out of this downturn relatively unscathed.
In terms of future economic opportunities Mark, cited a number of key areas for us to ponder.
Firstly, he believes that agribusiness will come to the fore and Mark quoted Bannister Downs $40 million investment with their new dairy as one example.
Secondly, Mark felt that this was the time for innovation. At PropertyESP we strongly agree with this point. If you continue to do business in 2016 as you have for the past 10 years, then you will undoubtedly falter.
Mark felt WA’s saving grace would be gold and the apartment market as key drivers for our economic recovery. In particular, Mark reinforced that there was a need to tie public transport to infill living, something we at PropertyESP have also been emphasising over the past 12 months.
At the end of the day, WA is cyclical because of its heavy reliance on the resources sector. But as we all know what comes down, will always go up!
Interested in what we might have to say about the WA property sector? Then contact us at email@example.com. We make sense of property!