The fabled road to recovery. We have all heard whispers of it over the last few years, yet our longest economic downturn has stretched on. And on. And on. Finally – there seems to be tangible evidence confirming the inevitable and eventual upswing for us West Australians.
A recent Momentum Wealth report on Perth’s Residential Property market spotlighted a positive shift in both supply and demand conditions, combined with high affordability in the current housing market, both of which are contributing to drawer buyers back to market. Let’s dig a little deeper.
Investing in Developments
Reading any WA news publication will reveal hints of a revival. The welcome news of investments in infrastructure and billions being injected into the local economy through the development of hotels, shopping centres and apartments, has a two-fold effect. Not only does it create jobs for the local workforce, it drives up housing demand for surrounding suburbs.
So – where’s hot right now? There are several new establishments popping up across the CBD. However, the savvy investor should look to developments in surrounding metropolitan suburbs; new properties will have a greater positive impact on the local community, bringing with them new restaurants, bars, schools, parks and cafes. Such coveted facilities help drive up both the demand and median rental prices.
Perth: Population Party
With both Perth’s population and employment decreasing over the past 12 months, they’re both bouncing back as we enter a new fiscal year. As the WA economy strengthens, Perth’s labour marketing is predicted to improve over the coming year as employment opportunities flood the marketplace. The improvement of job stability makes WA an attractive prospect to both interstate and overseas workers – so we are finally seeing population growth once again.
Land Prices Rising
Land prices rose by 37% in the June quarter alone. This is indicative of a positive movement in Perth’s property market. The Urban Development Institute of Australia WA announced that the average price for a block of land in Perth rose from $224,033 in March to $232,348 by the end of June. This is a trend that looks set to continue.
Supply and Demand
Let’s look back two years. A dropping population and large oversupply of housing saw Perth experience a mammoth slump in the property market. Fast forward to 2017 and the supply has tightened right up. The prospering economy and upturn in employment means buying and renting demand is once again on the upswing.
ACTON Property buy and sell houses across the Perth landscape – giving us a unique insight into the market as a whole. With favourable conditions constantly improving the economy is looking more lucrative than it has in years. Right now, it’s time to get back onto the property market and strike whilst the iron is hot.
Contact ACTON Corporate today.