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October 1st, 2015 | Media Statement
Investors who have been priced out of the Sydney and Melbourne markets have potentially a lot to gain by turning to Perth, according to Perth buyer’s agency, Property Wizards.
Managing director Liz Sterzel said that traditionally the softening of Perth’s market leads to an influx of interstate investors to the city, and especially now that the Sydney market appears to have hit its peak.
“Perth’s market is at the bottom of its cycle at the moment, giving it advantages over Sydney and Melbourne for savvy investors who are prepared to do their research.
“Where Sydney’s market goes, Perth tends to follow, and while there is some lag in the cycle there is the opportunity to pick up promising investments at lower prices.”
INTERSTATE INVESTORS PREFER CAPITAL GROWTH
Ms. Sterzel said that interstate investors tend to be looking for very specific opportunities when looking outside their home state.
“The need for more thorough due diligence on an interstate buy tends to deter investors who are focused only on yield-type investments,” she said.
“Those who are willing to commit to an interstate strategy tend to want more bang for their buck, and are generally looking for capital growth and development properties where they can accelerate their equity gains through adding value.
“The market softening has provided promising small development opportunities in Perth, and with thorough research and advice from a trusted professional, investors can be confident in backing a winning property in a market that continues to grow.”
PERTH’S MARKET FORECAST TO GROW
Ms. Sterzel said that despite the softening of Perth’s market, there is great potential for growth for those who are willing to get started now.
“Perth’s market has quietened largely in response to changes in the mining industry,” she said.
“However, Perth’s resources industry is still considerable and expected to continue in the export-led production phase for many years.
“As this transition takes place, Perth investment has opened up to previously neglected industries, such as tourism and infrastructure, and Perth’s economy is transforming independently of mining.”
Ms. Sterzel said that with Perth’s population continuing to grow, there is a bright future expected for the city.
“As Sydney and Melbourne continue to grow beyond the reach of the average investor, those with the determination to build a property portfolio would do well to turn their eyes to Perth.