The dip in Perth’s property market is starting to offer appealing opportunities for investors looking for a bargain. Perth’s median house price was $515,000 in March this year, down from 525,000 in December last year according to data from the Real Estate Institute of WA. Compared to the property spikes in Sydney and Melbourne, Western Australia’s capital could offer some decent value for the investment dollar.
The driving factors
One of the major factors driving is the downturn in mining in Western Australia, which has put pressure on some mortgages. This dip in confidence has many owners choosing to sell residential property in Perth rather than hanging onto it. Perth metropolitan median sale values are down 1.9% from 3 months ago, and down 4.5% from one year ago. That leads to some interesting properties being made available for purchase, particularly at the higher end of the residential market.
The other factor pushing prices down is the oversupply in the central Perth apartment market. The median unit price in Perth saw a rise of $7,000 to $419,000 from December 2016 to March this year, which could be indicating a return in confidence from investors. It’s still a renter’s market, but for those searching for an executive property to lease out there could be some good properties available before things could start to pick up again.
Sydney market pushing interest in Perth property
Pressure on the Sydney and Melbourne market is helping to drive some investors to purchase residential property in Perth and this may only continue, with NAB predicting a 4.5% rise in house prices for Sydney and a 5.6% rise for Melbourne within 2017. Little that wonder that those looking to sink their cash are heading to a market where they can pick up a three-bedroom apartment in central Como or East Perth for perhaps half the price.
What’s the verdict?
So should you be investing in Perth right now? As always, the answer is going to depend on your existing portfolio, objectives and timeframe for investment. There are certainly some big opportunities for those interested arising in Perth, particularly within a few kilometres of the city centre.
If you are looking for a residential property sale in WA or are simply looking for a stable return in the challenging Perth apartment market, our executive property management team in Western Australia can help you to find quality corporate and non-corporate tenants for solid rental returns.