If you’re looking to buy an investment property, here are five reasons why Perth should definitely be on your radar.
- An ultra-tight rental market
Perth’s rental market had a vacancy rate of just 0.6% in March, according to SQM Research. So with just six out of every 1000 rental properties currently vacant, you’re likely to have little trouble finding a quality tenant. Moreover, with rental properties in high demand, SQM’s data also shows median asking rents in the city surged 16.3% year-on-year to a record high of $602 per week.
- Low entry price
Perth’s property market has proved its resilience over the past 12 months after prices grew at an annual rate of 1.9% in March, despite multiple interest rate increases from the Reserve Bank of Australia. But while it’s one of the strongest-performing capital city markets in the country, Perth remains affordable with a median home value of $567,000 – the second-cheapest of all the capital cities.
- High rental yields
Perth also boasts some of the highest rental yields in the country, with a gross rental yield of 5.4% for houses and 6.5% for units over the March quarter, according to Domain.
Rental yield is the annual rental income as a percentage of the property’s value, so a higher rental yield means that a property is generating more income relative to its value – which can help offset any expenses and generate a positive cash flow.
- Growing population
Western Australia’s population is surging amid record migration, with the state growing by a strong 1.8% over the year to September, according to the Australian Bureau of Statistics. That’s the second-fastest population growth in Australia and above the national average of 1.6%. With most migrants settling in Perth, this will add to the demand for rental properties in the city.
- Strong economy
Perth’s economy is supported by a booming resources sector and strong business investment, with the Chamber of Commerce and Industry WA recently forecasting growth of 3.5% this financial year. A strong economy is important for property investors because it means there are more job opportunities and a greater demand for housing.
Perth’s ultra-tight rental market, affordability, high rental yields, growing population and strong economy make it a prime location for property investment. But to make the most of the opportunities, it’s essential to have a deep understanding of the local property market.
That’s where Resolve Property Solutions comes in.
As your boots on the ground, we can provide valuable insights into Perth’s property market, find properties that meet your criteria and negotiate an excellent deal for you.
Looking to buy a property in Perth? As an expert Perth buyer’s agent, Resolve Property Solutions can help. To discuss your options, book a free strategy call with Peter Gavalas.