Source: Real Estate Conversation
When it comes to property investment, buying is all in the timing. While the nation (or at least the majority of the nation’s population) has been watching Sydney and Melbourne’s residential markets boil over and now begin to slide, Perth’s residential property market has been preparing for its return to the spotlight.
Reports issued last week outline that there are $130 billion in mining projects either committed or in the pipeline across WA in the oil, gas, transport, mining and the construction sectors, and whichever way you look at that – it can only spell prosperity again for WA’s economy.
Of the top 30 projects pegged for the State, 11 are in mining and eight are in oil and gas.
And there’s been an $8 billion avalanche of infrastructure projects introduced, solely in Perth, including the $1.6 billion Perth stadium, $2.6 billion Metronet project and $500 million Ritz Carlton at Elizabeth Quay, to name just a few.
Projects such as these are critical for driving population growth which is necessary for property values to increase.
With this investment bonanza and WA still ranking as the most affordable property market nationwide, many investors are looking to the west as a market poised for growth and as a location to invest, before prices once again rise.
In Perth’s current market, examples of value abound.
Case in point, you can purchase a brand new two bedroom/two bathroom, 82sqm beachfront apartment with a 55sqm balcony for $775,000 just 10 minutes from Fremantle.
Compare this to Sydney where you will be paying upwards of $1.4 million.
Perth’s premium suburbs such as Burswood, are already experiencing property price growth of up to 50 per cent from the previous year.
Other suburbs are following suit including Bicton with 20 per cent price growth, City Beach with 12.7 per cent and Claremont at 12.3 per cent.
And while East Coast investors may be slow to catch on, those in the west are moving ahead of the market already.
Urbis reported last quarter that Perth witnessed 410 apartment sales, which has not been seen since the first quarter of 2016.
There are green shoots in the rental market too.
In the past three months, rental vacancy rates dropped from 7.7 per cent to 5 per cent and some suburbs are securing yields over 4 per cent – particularly those that are benefiting from this significant infrastructure spend.
When adding up the numbers, Perth’s property market is certainly heading in the right direction and those in the know recognize that Perth is undoubtedly offering the right mix for further investigation.