PERTH PROPERTY MARKET UPDATE
Well, 2019 has not started out quite how many experts predicted.
Conditions are likely to remain tough in the short-term, however with a backdrop of positive state economic outlook, we expect gradual improvement in the Perth residential market over the medium term.
Public expenditure is expected to increase, business confidence is improving and a low AUD coupled with high commodity prices should maintain the high level of exports.
Employment conditions have also improved and leading indicators point to a continuing strength in the labour market.
A better economic and employment outlook should slow down negative interstate migration, thus leading to stronger population growth and improving underlying demand for property.
But the big question is - is there any reason to act now?
That is a simple question with a complicated answer.
If you are risk averse, the answer is not yet.
However now is the right time to start looking, getting your ducks in a row and then acting when you are more confident the market has turned. If you want to get the ball rolling in readiness, then get in touch with us here.
Long term growth hotspots
If you are a seasoned investor you will know that there are bargains to be had in a flat market and this means projects can still stack up in the right areas.
There are motivated sellers out there and deals to be done, particularly if they are properties related to the 3 D's - death, divorce or debt.
We have seen throughout this downturn that getting the right property in the right area can generate a healthy profit.
Of course the blue chip suburbs close to the city are still worth consideration and continue to perform well even in a soft market. There is plenty of activity in these areas with properties for sale showing very low days on market.
We believe the right properties in suburbs like Leederville, West Leederville, Shenton Park, Mt Hawthorn, Highgate, North Perth, Mt Lawley, Bayswater and Subiaco can still generate good return on investment at the right purchase price.
There is also a lot of Government investment along major public transport corridors including the airport link train line.
The suburbs listed below will benefit from large infrastructure projects and boast properties with big blocks in areas that are yet to go through a transition to medium density housing.
- Maida Vale
- Cannington East
So while the market is still yet to be officially labelled as 'in recovery', all of the signs are there to suggest that 2019 will see growth in the Perth market.
If you are ready to start your next project, or would like some help assessing or finding a property to develop, give us a call on (08) 9240 6020 or hit the enquire now button at the top of this page.