If there is one thing we know for sure, Perth is the place to be in 2021. Known as the most isolated city in the world, our isolation – previously seen as detrimental to our appeal – is what is making us now one of the safest cities to live in and one relatively unscathed by the global COVID-19 pandemic. As a result, Perth’s real estate market is booming.
As people flood back into Western Australia, seeking refuge from the ravages of the pandemic, real estate agents in Perth are finding it hard to find stock. Historically, Perth’s housing market has remained steady, typically showing expected cyclical trends spoken about by property experts. Over the last ten years, median house prices showed only small fluctuations, but all that changed in the post-COVID environment.
Last year we saw housing markets across Australia impacted by COVID-19, and Perth metropolitan property prices reached their lowest since September 2011, with regional prices hitting their lowest since September 2018.
2021 – things are on the up
This year Perth’s property market displayed strong growth, with a 4.2% increase in the quarter up to April 2021. CoreLogic reported Perth’s real estate market continued to grow by an additional 1.1% in May, with an overall 8.45% increase in property prices compared to those recorded in May 2020.
REIWA amended their forecast to suggest real estate in WA will increase up to 15% this year, which is fantastic for those wanting to purchase an investment property.
Why invest now?
Consumer confidence is on the rise, and with banks offering some of the lowest interest rates in years, it’s the perfect time to take the plunge and purchase an investment property in Perth. With our economy showing resilience against the effects of the pandemic and the government embarking on significant infrastructure upgrades, Perth’s property market growth is on an upward trajectory.
Return on investment
When deciding to invest in a property, rental yield is one of the most important factors to consider.
You determine rental yield by calculating the amount of money left each week from the rental income after covering the property’s overall costs.
If you have read the news at all this year, you’ll know that Perth’s rental market can hardly keep up with demand. Home inspections attract multiple prospective renters, with many willing to offer over and above the listed rental price to secure a property.
City dwellings and popular suburbs
The announcement of the new ECU City Campus will be a massive drawcard for international students once international borders reopen, making purchasing a city apartment a savvy investment for an astute investor.
It promises to reinvigorate the CBD, bringing vibrancy to Perth’s central spaces and a new cohort of city lovers. Part of the City of Perth’s economic recovery and future growth will be the completion of several major planned infrastructure projects to unlock economic opportunities and improve the desirability and liveability of the city.
Investing in Perth’s booming property market – the basics
If you think you’re ready to start investing in Perth, start by speaking to a team of experts who can help you as you begin your investment journey. ACTON’s team created this list to help you prepare for taking the plunge into the investment property market.
- Plan a timeline for your investment.
Think logically about the next few years and ask yourself, do you intend to eventually live in the property, or will you use it as the cornerstone for further investments? Typically, it can take up to ten years to see significant financial returns.
- Clarify your financial position.
Be honest about what you can afford. Don’t jump into an investment without a clear financial plan, as you don’t want to be left having to service a mortgage you can’t afford.
- Research promising suburbs.
Understanding the history and the possible future of each area can impact the future value of a property. Speak to one of ACTON’s property experts for insights into potential growth areas. A conversation with one of our experienced team members will help you know what kind of property types attract tenant interest as this helps calculate potential rental returns. Our professional real estate agents understand current market trends and can help you understand the types of properties that will align with your financial situation.
- Understand the rental market
As mentioned above, the Perth rental market is demonstrating exceptional growth in 2021 but undertaking a little research in this area can help you solidify your investment plan.
- Calculate your potential return
To understand your potential rental yield, research the possible investment area to get an idea of the rent you will receive and ensure you can afford the ongoing and upfront costs of investing in real estate.
Ask for advice
Investing in real estate is considered a relatively safe investment, but we recommend you talk to an expert before taking further steps. The ACTON real estate team has detailed knowledge of some of the most luxurious properties in metropolitan Perth, the Northern corridor, and our beautiful South West.
Why choose ACTON Real Estate Agency in Perth?
Whatever prospective investment property you are interested in purchasing, ACTON Real Estate company in Perth is here to help. Our offices are strategically located around the elite Swan River suburbs and up and down our wonderful coastline from Mandurah to Mindarie. Known and respected as one of Perth premier real estate agencies, we can’t wait to help you on this journey.
Contact us today to speak with our team of highly skilled and knowledgeable real estate agents and learn more about our available properties.