Investing in
Perth property

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Investing in
Perth property

Property investment is one of the most popular ways in which to build wealth, thanks to its tangible nature and ability to increase in value year on year – depending on market conditions. Whilst astute investors have the ability to identify properties with ideal specifications and finishes within markets that are well positioned for growth, the all-important factor is still location – location – location.

Welcome to Perth

It’s one of the world’s most liveable cities with a population of just over 2 million, positioned in the South West of Western Australia (WA) alongside some of the best coastlines in the world. Often referred to as a laid back town with less hustle and bustle compared to the popular Eastern States cities of Melbourne and Sydney, Perth has a lot to offer for investors looking for opportunities in WA.

A threefold increase in foreign investment

Whilst it is no secret that 2018 has been a difficult year amongst the Australian property sector (in particular WA), Perth is going through a growth period with an abundance of ongoing developments and projects adding to the skyline. In a recent article by The West Australian Newspaper, it was revealed that foreign investment has experienced a threefold increase within Perth in the first part of 2018, with a record level expected in the coming months from the top 5 investment countries of Singapore, the US, China, Hong Kong and South Korea. If this October property report is anything to go by, the worst of the market downturn has passed and things are looking positive for buyers and investors.

A changing Perth landscape

The recent erection of the $1.8 billion Optus Stadium is one such example of the development activity, already attracting a significant boost in Perth tourism thanks to various sporting events in 2018. Another example is the $3.8 billion Belmont Racecourse redevelopment which in essence is going to introduce an entirely new suburb to the Perth metropolitan area thanks to its new 4,500 apartments. Chinese investment giants, 3 Oceans Capital are also entering the Perth market with a $450 million twin-towers development in the popular coastal suburb of Scarborough, an area which in itself is also experiencing its own extensive revitalisation. The City of Perth redevelopment is also contributing to this growth, including the recently completed Yagan Square development, as well as Chevron’s 30-storey tower in the newly developed Elizabeth Quay district in the heart of the CBD.

It’s a great time to invest

Now is a great time to invest into a market which is due for growth thanks to these recent projects contributing to the lifestyle and residential opportunities for local residents. Whilst the growth of housing values have slowed down (and even declined in some cases) since Western Australia’s mining boom between 2004 and 2012, there are some suburbs reporting median value growth of AU$815 every single day in key areas like City Beach, translating to an 18% increase in median sale price in just 12 months.

Opportunities within a “buyer’s market”

The common story for 2018 is that most suburbs have experienced little to no growth, creating a “buyer’s market” according to Hayden Groves, former President of REIWA (The Real Estate Institute of Western Australia). This brings about opportunity for affordable options for future investors and home owners looking to snap up properties prior to the eventual market correction. Whilst this correction is unknown in terms of timelines, WA Premier Mark McGowan commented “…the Western Australian economy improving and we see evidence every day.” thanks to a broadening local economy with strength in the mines.

But before you invest…

Local Perth finance and property expert, Damian Collins, further commented by recently stating, “There is now a prime opportunity for buyers to benefit from the relative affordability of the Perth market before property prices rise, but investors need to remain vigilant in ensuring they are purchasing properties with the right drivers in place to profit from this growth.”

A growing trend within the Australian property market is with “build to rent” properties which have taken inspiration from the popular US model known as “tax credit housing”. The incentive aims to provide support and relief to buyers without sizeable deposits and savings by introducing affordable housing specifically for tenants to rent, an ideal scheme for investors to capitalise on.

We can help with your investment strategy

With so much activity in the market which is set to return to “normal housing values” in the near future, the Perth property market provides ample opportunity for astute investors looking to build, develop and lease quality properties. Thanks to our team of experienced professionals, we are able to facilitate and support investor activity for those wanting to discuss investment opportunities.

If you would like to speak with a member of our team, we welcome you to contact us for an initial conversation to discuss your property goals.

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