Perth Property Investment
Perth’s property market with prices predicted to rebound in 2020, The state government recently announced a significant housing investment package and made changes to the financial assistance it provides first-home buyers. Not only will this boost the construction sector, it will create jobs and stimulate the broader economy, as well as assisting more residents to become homeowners. With population growth steadily improving so should the demand for housing.
Within the now-dragging property price performance, capital gains have been restricted to high-quality, in-demand suburbs close to the CBD, but an ‘X-factor’ goes some way to enhancing the performance of some locations.
Generally areas with a special ‘point of difference’, whether it be proximity to Perth’s pristine coastline, popular café/entertainment precincts or strong educational/community infrastructure. Lesser regarded areas appear to have been affected by the recent contractions to a much greater degree.
Perth property is currently a buyers’ market, it’s difficult to pick where the peak of capital growth sits geographically at present. He says some cashed-up buyers are jumping on the opportunity to purchase in quality localities with the view to enjoying gains come the next upswing.
Overall in looking towards 2021, Perth property investors seem to be honing in on those areas with solid public transport, plus other services and infrastructure.
Future urban infill is likely to closely follow areas well-serviced by transport. It’s a good time to perhaps secure a strategically located site with potential for future redevelopment on the back of this.
In the north, Padbury and Craigie as options for investors looking for a development site with some capital growth potential. The north-east corridor presents an opportunity for first homebuyers and investors in smaller apartments at or below suburban house values with lifestyle benefits on your doorstep, transport, good coffee, small bars and restaurants. Examples are Mount Lawley and Rivervale.
In the south, opportunities exist for investors and upgrade buyers to purchase apartments and homes close to infrastructure including Kwinana Freeway, TransPerth train and Cockburn Gateway Shopping Centre in Success, Aubin Grove and surrounding suburbs.
You could be in for a wait, however. Ptolomey says agents are reporting the buyers’ market is entrenched for the short- to medium-term, although solid eastern capital performance could boost his city’s prospects.
If the Sydney or Melbourne property markets continue to grow we’d expect a recovery to occur sooner rather than later as Perth property would invariably become relatively attractive from a price point.
Perth Property Investment Overview 2020
The Western Australian (WA) housing market is expected to bounce back in the next 12 to 18 months, according to Urban Development Institute of Australia’s (UDIA) analysis, which was based on three decades of Australian Bureau of Statistics data.
UDIA WA Chief Executive Tanya Steinbeck said the institute monitored property market cycles in WA over the past 30 years and found that cycles in the state have spanned between 4.5 and 8.75 years, with an average length of five years during the period.
Further out in Perth, if you’re looking for capital growth opportunities, may be an area to consider for property investors in 2020.
Perth property buyers should always take a long-term view because nothing much is going to happen any time soon in terms of property value gains.
Perth is going to need a lot to go right and it’ll be a long time before it gets back to its glory days of three or four years ago.
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