The Real Estate Institute of Australia recently released its Housing Affordability Report which revealed that Perth is among the most affordable capital cities in Australia, with housing affordability in WA improving by one per cent compared to the March 2018 quarter.
Add to this the recent cut in interest rates from the RBA, along with rental returns showing ongoing improvements and it is easy to see why interstate investors are starting to look to the West for their next investment.
Peard Real Estate CEO, Peter Peard, was quoted in a recent article in The West stating that their offices had seen a 100% increase in enquiries from people based in the Eastern States and attributed this to several factors including WA’s improving economy, rock bottom prices and greater employment opportunities.
This should not come as a surprise to anyone - we have certainly seen it before. It was back in the early 2000’s when Perth property prices surged on the back of interstate investment as the Sydney market began to cool after a boom in prices.
No one is predicting another boom quite like what was seen at the turn of the century, but what we can predict is strong and steady improvement backed by these early indicators and the very positive macro outlook for the WA economy.
So when you combine the most affordable property in the country, an improving economy, low interest rates and high rental returns it should come as no surprise that savvy interstate investors are starting to look for their next project among our fair city.
For those of us already based in Perth it may seem too soon to start planning our next project. After all we have seen nothing but declines in the market for years.
But when our friends from over East start looking around and snapping up development opportunities within 5km of the CBD for a comparative bargain it is only a matter of time before the market turns and prices increase at a rapid pace.
So if you would like some help assessing or finding a property to develop, give us a call on (08) 9240 6020 or send us an email.