Strong Gains Expected for Perth Property Investors
Perth property investors are positioned to make strong capital gains over the next year, in addition to already strong yields and one of the country’s tightest rental markets.
Perth’s citywide rent price is at it’s highest level in six years, and the vacancy rate is down to 0.2% in some areas. Interstate migration, which increased for the third consecutive quarter, was one of the factors strongly in Perth’s favor. At Resolve Property Solutions, we are receiving a large number of enquiries from people who are looking to relocate to Perth from the eastern states.
The Australian Bureau of Statistics revealed that in June, new investor housing loans in WA were at $498 million, which is a five year high.
Experts expect that next year, Perth’s average house price will surpass the previous record of $615,917, reached in 2014. This should attract more investors keen on short-term capital gains to the market. They can buy a new house at a much lower price than in the Eastern States and sell at the expected peak of Perth’s price cycle.
Perth ended July by recording the lowest number of available rental listings since February 2013, excluding last year’s Christmas-New Year period, when listings traditionally dip. An easing of house price growth, increasing rental prices and a lack of available properties should encourage investors.
Perth Suburbs Moving Up
Spearwood experienced the largest increase in average house values for July, rising 3.3% to $485,000. Kingsley also performed well, with a 3.1% increase to $620,000. Leda also rose 2.9% to $300,500. Both The average house vale in Success rose to $521,000 and Greenfields to $297,500 representing a 2.8% increase for both suburbs.
The number of properties listed for sale decreased 2.3% over the month of July. However, this is not unexpected, give that winter is usually a slow selling period. What is most encouraging is that the Perth home value index increased 0.3% in July.
Normally wet weather dampens people’s interest in attending property inspections, but the fact that July was still a very strong month for sales means the Perth property market is well positioned to continue its strong recovery.
Outlook for Perth
With winter well and truly set in, stock levels are seasonally low. Buyer activity hasn’t subsided though, large numbers of people are still attending home opens and multiple offers are being received on accurately priced properties. Good properties are selling quick and generally after just one home open.
The outlook for houses in the inner city and middle ring suburbs is that demand will stay strong, while supply levels remain low. Demand for property has been largely driven by owner occupiers and first home buyers. We are also experiencing a large volume of people returning or relocating to Perth from the eastern states and overseas.
Investor activity is starting to increase, with high yields as well as current vacancy rates being below 1% making Perth an attractive location to invest. Eastern states investor activity and enquiries are increasing. As the Perth market continues to show signs of strength and constant growth, we expect investor confidence to increase going forward.
Finding the right property in this market is challenging and competitive. You need an expert on your side to help you and increase your chances of securing your property.
Resolve Property Solutions is an independent and qualified Buyer’s Agent specialising in Perth property. We will work hard for you to help you search, negotiate and secure your property goals at the best possible price.
Our story started with the passion for property and the research behind finding the right one.