Property Investment in Perth Written by Jamie Horner
Perth is the only Australian city where you can get a clear beautiful view of the Indian Ocean. That is what makes it just perfect. It is without a doubt a paradise on its own due to the unique setting it has.
House prices have remained low over the past few years and the completed Federal election result has removed the doubts of change. An announcement to alleviate tight lending parameters provides new found confidence as Investors turn their focus back to the property. This leads to Perth being a favourite city to investors Australia wide.
We have been asked quite a few times about how the Perth Property market is going, When will prices increase? How long will the market stay depressed and will it go back further?
The Property market in Perth has already seen movement and growth in key suburbs, especially Western Coastal suburbs and properties that are in close proximity to the Perth CBD, rivers and beaches that already have limited supply.
There is also demand and growth for quality apartments in good locations. Price movements in history have always been led by demand for scarce resources, and properties in key areas of Perth between waterways and the CBD lead the revival.
Opposingly there are still price decreases and corrections in suburbs in newer infill suburbs more than 25km from the CBD and with large existing or future supply stocks.
Key information as depicted from REIWA Market Statistics and the Herron Todd White Property Market Report indicates that Perth is still in a recovery stage which will continue over the next 12 months, and for many buyers, this is a prime time to secure a quality property.
You might ask, so, what are the best investment picks and which are the best suburbs for property investment in Perth? Here are the top picks and the best ones to invest in
1. Central Perth
It is not a surprise that the centre of Perth, areas such as Victoria Park, Leederville and within a 5km radius of the CBD has continued to attract renters over the years. You will find professionals flocking here most of the time. They simply want to have access to everything that city central Perth can possibly offer.
The relative affordability of the area has remained stable which has made it a good place for investors. That’s why the suburbs in this area have the best performance. They have grown by 1.9% compared to other areas where the growth rate has reduced.
2. East Perth
This area would suit you best if you are looking for a place with great bars, cafes, restaurants, transport and Optus Stadium just a hop skip and jump away. This is probably the finest place for property investment in Perth, especially for people who love the city life.
East Perth, Ascot, Burswood give you access to the Swan River esplanade and the beautiful parklands. It is in close proximity to the Perth Airport and this would explain why there has been a huge increase in the leasing of apartments lately.
3. South West
The reason why Ardross, Manning, Como, Mount Pleasant and Applecross is among the top suburbs is its recent change in zoning. This higher density zoning allowance provides Investors with excellent investment options amongst some of the cities most prestigious homes and iconic picturesque streets.
Adjacent to the Swan River you can enjoy the calm waters, walkways and lifestyle with the city also close to your door and the backdrop to your balcony views. The major development changes in the area, have favoured young professionals and downsizers.
Wren Street Mount Pleasant – Located in a key growth and return area and situated amongst some of the finest homes
4. Where Else?
Affordable suburbs with surrounding high-end neighbours provide great potential for capital growth The suburbs of St James, Beckenham, Forrestfield, Ashfield, Bayswater, Coolbellup, Spearwood, Bedford, Duncraig and Kardinya are also properties you should look out for. Here are three factors you should consider when looking for property investments in Perth:
Look for a suburb near the CBD 6-12 km around the CBD would be good and check out the neighbourhood
Invest in a property that provides a good positive cash flow with great potential for growth
Look for suburbs with transport, planned infrastructure or major projects, in addition, many successful rentals are located in close proximity to popular public schools and family homes tend to attract longer-term tenants
Seek affordable suburbs with higher- end neighbours that had recently experienced price growth. The REIWA Median price map is a great way to distinguish
Unfashionable homes and unfashionable suburbs. To ensure capital appreciation potential, looking for a property that with a few cosmetic changes and some renovations, will attract tenants who are willing to pay higher rents. This will also raise the value of the property if you choose to sell it after a few years.
These key factors create a huge activity increase in renting and an upward push on capital price pressures. Therefore, if you are planning on property investment in Perth, ensure that you consider them too.
For investors seeking an income stream from rental properties, the most important aspects to consider are property location and rental return rates. It’s important as an investor to know the market in which you wish to invest in or hire an expert to help.
There are excellent buying opportunities in this market. Whenever you’re in need of qualified Real Estate and Property Management professionals, contact the team at Empire Estate Agents. We specialise in the management and selling of residential properties.
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