Perth real estate market update
Perth’s market is showing signs of stabilizing, and we can see this in an upswing in enquiries from both local and interstate investors. After settling in a lull for the past two years, economists are now suggesting the Perth market has reached its bottom, or is very close to doing so.
Investors had shied away from investing in Perth on the back of negative data around the slowdown and job losses in the mining industry. More recently, however, we have seen signs that prices appear to be stabilizing as confidence grows in the tourism and oil and gas industries and investors move away from the overheated Sydney market.
Accordingly, we have seen buyers begin to return to the market hoping to take advantage of the wide range of choices on offer. Most of the enquiries we are receiving are from investors looking for add value opportunities, with a focus on subdividing now or holding a property in a proposed rezoning area for later. Accurately priced properties with add value opportunities continue to sell well, and it is important for investors to carry out thorough due diligence and move quickly when they find the right property.
While the rental market has softened over recent years, the decline in rents appears to be stabilizing, though recovery may be slow. Investors who are looking to buy and hold must be careful to purchase a property in an area that will appeal to tenants, such as those in close proximity to public transport and other amenities, and may need to consider offering incentives such as lower rents to attract and keep tenants.
One thing it is critical for investors to remember is that success in property investing comes down to time in the market, and with careful understanding of their budget and potential cash flow the savvy investor will be able to ride out these quieter market conditions and reap the rewards of the next upswing.
Perth has never experienced a ten year period without house price growth, and with the expectation that prices are at or near bottom, and large numbers of housing stock available, there are opportunities for both new and seasoned investors who remember that money is made in the market, not on the sidelines.
If you have an interest in building your wealth through property, then call us on (08) 9381-7450, or request a FREE Starter Pack.