Despite rising interest rates, shifting economies and a declining property market, Perth continues to defy the odds as a top location for property investors.
According to Suburbanite Principal, market commentator and valuer, Anna Porter, Perth is shaping up to be a powerhouse market for investment and not just due to its mining economy like years gone by.
Porter sees Perth as greater than a resource and mining hub but rather a strong and diversified economy – ticking all the boxes for an investment hotspot.
“Under current market conditions, Perth is one of the most affordable capitals in Australia, second to Darwin, with a median house price of $558,879, according to Corelogic,” shares Porter.
“This market offers a competitive residential entry price point in comparison to other capital cities around Australia and we are seeing this filter through on the ground with a decrease in typical days on market for Perth sales,”
“It’s also a good news story for investors as the market has experienced significant growth over the past 12 months and currently sits at 8.7% which is bolstered by returns of generally 4.5% plus and strong rental demand.”
But according to the experienced valuer, a ripe investment market goes beyond the numbers and needs to account for liveability, infrastructure, and employment.
Perth’s economy is a resilient one and actually was the strongest economy in Australia during the COVID-19 pandemic.
“The Perth job market has always been fluid and now that the borders are open, we expect more interstate and international migrants to take advantage of the lifestyle benefits the Western state offers,” suggests Porter.
“The state overall benefits from a huge infrastructure pipeline including the $1.7 billion Perth City Deal and $37.4 billion commitment to mining, oil and gas infrastructure projects,”
“We also expect the market to head into a construction boom given the huge infrastructure pipeline.”
Preparing for the future, council controls in Perth are also changing to make way for more dense housing and living.
“At Suburbanite, we’re targeting properties with denser zonings to ensure our clients have a lucrative future development opportunity or can increase the bang for their buck immediately,” shares Porter.
“Development sites are selling at a very affordable price and with the right team behind you, this is prime real estate for savvy investors,”
“There’s opportunity from all angles with some sites easily subdivided into two lots, others developed and some left as is to take advantage of increasing rents.”