Perth’s property market has been through a turbulent time in recent years, but most experts agree that it has now reached its lowest point. While this might seem like an alarming consensus, it also means that Perth’s property market is preparing to rise. This bright spot for investment properties – as well as a boom in private infrastructure – represents new opportunities for property investors.
What Do the Stats Say about Perth’s Property Market?
Property analytics company CoreLogic’s most recent figures show that Perth’s housing market fell by 0.1 per cent in the September period. While this is a decrease in property prices, it represents a significant shift compared to recent property stats.
Over the past year, Perth’s property market dropped by 2.9 per cent while in the last three quarters, it slipped 1.6 per cent. Experts agree that while September’s figures show a decrease in property prices, they also indicate that Perth has reached the bottom of its property cycle.
The figures for units in Perth tell a similarly positive story. A 0.8 per cent increase in prices in November compares favourably against the 2.9 decrease from the past year.
Statistics such as these are an overall picture and are averages. The signs are there that there is already some upward movement for areas and suburbs with attributes in demand. For example being near a good school, near a beach, easily accessed by roads, quiet and near the city are attractions for investors or tenants.
What’s next for Perth?
If Perth’s property market has indeed bottomed out, a slow rise is the next step in the cycle. Many pundits believe that this will take place between 2018 and 2020, with median house prices increasing by around $15,000 in value. However, despite a strong September, units are set to fall in value during the same period, making house investment the preferred option.
The recovery for Perth’s property market is set to be slow and steady, and while it will be well below the peak property prices of 2007, there are still opportunities to invest now and benefit later.
Private Infrastructure – Another Possible Factor in Perth’s Rise
As Perth’s property market begins its recovery, potential investors should keep one eye on infrastructure projects. A massive $4 billion is being slated for upgrades to metro shopping centres, while hotels and apartments are also in the construction pipeline for the next few years. There is also activity in certain areas of the resource industry (ie new lithium mines and a high gold price is encouraging gold exploration with new mines planned) This is set to bring jobs to Perth, as well as reshaping the value of some properties in and around the region.
Developments in shopping, dining, entertainment and leisure should be the focus for investors. These amenities are more likely to boost the liveability of local areas and the properties within them.
Where to Look for Properties in Perth?
If you’re looking for a place to live, venturing further out from the city suburbs can be beneficial in terms of dollars and cents. Alternatively, for investors, many of Perth’s oversupplied suburbs represent fantastic rental opportunities at low prices. By investing now, you may benefit from a gradually improving market.
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