Article by: Matthew Hughes, Founder & Managing Director of Capital Property Advisory
Following reports that Perth’s property market was heading for recovery in the final quarter of 2017, the market continues to show strong signs of stabilisation in the first few months of the new year. Paired with increasing indicators WA’s economy is picking up after a recent downturn, it’s becoming impossible to deny the potential Perth’s property market holds for investors in 2018.
Positive signs for Perth property investors
With REIWA advising the median house price increased over the last month, the continued recovery of Perth’s housing market isn’t the only sign WA is back on the road to recovery. After peaking in 2016-17, full-time employment rates have been picking up since October 2016, with REIWA announcing a 3% job growth across 2017. This increasing confidence in WA’s economy has also been reflected by a steady growth in household consumption over the past year, as well as a 1.3% rise in State Final Demand.
Perhaps the most positive sign for those looking to invest in WA’s housing market, however, is the ongoing stabilisation of Perth’s rental prices – a trend that has continued well into the year. After showing major signs of stabilisation in late 2018, median rental prices have continued to hold steady at $350 per week throughout the first quarter of 2018, followed by our first rent rise in five years recorded in April. And these aren’t the only positive indicators for prospective investors; according to REIWA, WA witnessed its lowest vacancy rate in two years this February at just 5.1%, a figure REIWA president Hayden Groves believes could be partly due to the improving population growth.
Time to turn to WA
Seasoned investors will know that purchasing property at the right point in the property cycle is key to their investment profitability. Investing in property before the market enters growth phase presents investors with a huge opportunity to capitalise on increased demand for housing and growth in property values, both of which will help them achieve above market returns on investment. So why is now such a crucial time for local and interstate investors to turn their attention towards WA?
Whilst falling housing prices in Sydney and Melbourne continue to indicate the housing boom is over in the Eastern states and the market is now entering a slowdown phase, signs of stabilisation in WA suggest the Perth property market has seen the worst of its recent downturn and is starting to enter a recovery phase. This is a crucial period for astute buyers looking to profit from the ensuring growth of the market. With more people prepared to sell, this phase presents huge opportunities for investors to pick up a bargain before property prices begin to rise as confidence in the market increases. Furthermore, with upcoming developments, transport links and planned density increases set to further spark interest in Perth’s market, WA is presenting plenty of opportunities for investors seeking properties with high capital growth potential in 2018, and beyond.
Don’t do it alone
If you are looking for investment opportunities in the Perth property market, in-depth knowledge and insight into the local housing market are key to ensuring you make the right purchase at the right time. Whether you’re a seasoned investor or looking to enter the Perth market for the first time, a buyer’s agent can offer you the advice, assistance and research insights you need to identify the best opportunities in the current market.
As the highest-rated buyer’s agency in WA, Capital Property Advisory are renowned for our dedicated and competitive property advice services. From the initial market research phase to negotiating a final offer, our buyer’s agents will support your investment journey every step of the way. Organise a consultation with one of Capital Property Advisory Perth buyer’s agents to discuss your investment goals today.