It’s no secret: the last few years have been slow for Perth’s property market. Prices fell, sales slowed, and vacancy rates rose.
But with the dip apparently slowing - and with some growth recorded starting in late 2017 - savvy investors are taking a keen eye to the trends. The question on many of their minds: “Is now the time to swoop in and make a winning investment?”
In order to shed some light on the answer, we’ve scanned the news, collected information from the REIWA, and listened to what the experts are saying.
The following article is an unbiased look at facts and recent opinions. Sources are local as well as national, and opinions are taken from real estate experts and investment advisors only.
We’ll start with the general market outlook, and finish with a spotlight on the Central District.
Perth Property Market: On the Rise?
Across the board, it seems the outlook for Perth real estate is almost surprisingly bright.
No one is predicting the dizzying capital gains witnessed mid-mining boom, but property experts say there is plenty of value on offer and are feeling bullish about 2018.
In fact, many are going as far as to say Perth represents quite a good real estate opportunity.
“We provide reports to clients right around Australia and what we’re saying is that Perth is the land of opportunity for savvy investors.”
- Terry Ryder, property researcher and founder of real estate website Hotspotting
Some are making still bolder claims. Take Channel 7 Group Chairman Kerry Stokes, for example.
“Right now, any young person out there, any apprentice, worker, tradesman — the best thing they’ll ever do in their life is walk out this weekend and buy a home in Western Australia,” - Mr Stokes said.
The numbers* look to be in agreeance with these opinions. Here’s a quick rundown:
- Median Price Increasing: In the last three months of 2017, Perth’s median house price increased by 1.2% over the previous quarter. Median unit prices rose slightly more by 1.3%
- Vacancy rate decreasing: Dropped from 4.4% in January 2018 to 4.1% in February 2018
- Job growth: JLL Buyers Advocate Lachlan Delahunty said the signs of a strengthening market have been visible over the past 12 months. “Employment is a major driver providing green shoots for the Western Australian economy by adding more than 20,000 jobs since the beginning of the 2017,” he said.
*All above figures are drawn from property investment publication Ironfish.
Take these opinions and numbers with a grain of salt - growth is not predicted for every suburb. Prospective buyers in Perth would be wise to pick and choose their investment carefully.
On that note, we’ll take a closer look at the Central District.
Perth CBD: Ripe for the Picking?
From our research, the consensus seems to be that central and CBD suburbs offer the best and most stable opportunities in real estate.
Investment consultant Damian Collins predicted Perth’s median house price would rise between 2 and 4 per cent in 2018, with aspirational and inner-city suburbs performing much better than areas on the fringes of Perth.
One reason for Mr. Collins’ preference for inner-city real estate was the infrastructure planned for that area.
“When money is spent on public infrastructure, it is usually only after it opens and people realise the benefits that we see a boost to surrounding property prices,” he said.
And infrastructure investment for Central Perth is indeed on the ledger:
“Massive State Government investment in Metronet, Optus Stadium, Yagan Square and Elizabeth Quay is forecast to begin paying off.” That’s from Josh Zimmeman via interview with PerthNow.
These opinions and infrastructure plans suggest that now may be a good time to buy in the Central District. Prices and interest rates are low, the area is forecasted for growth, and planned infrastructure is predicted to push property values up in the near future.
Opportunity for the Savvy
Combine the bullish expert opinions and favourable numbers with the reality of a market just starting to recover, and it looks like now might be the time to buy in Perth, and the Central District in particular.
Buyer confidence and prices are just starting to increase, so now could be the time to get your foot in the door.
Perhaps this is one reason our CBD development, Verdant Apartments, is now well over 70% sold. If you’re looking for modern and central apartments, Verdant may be a viable option for you.