Perth property boom in WA - an investor’s opportunity in 2021
Thanks to record low-interest rates, booming mining activity, growing consumer confidence, and various government stimuli, it is a great time to consider property investment.
You don’t have to be a seasoned property investor or own multiple properties to invest in property. First-time homebuyers can also own investment properties in Perth.
When it comes to investment, properties are still regarded as one the most solid investments as it is more reliable and less of a risk than the stock market. This is especially relevant for those mid to long-term investments.
Perth property sales hit their highest level in seven years, with established home sales 29 percent highest in the three months to November 2020.
For the thousands of homeowners whose, home or investment hasn’t moved for a decade the impact will be significant.
According to the Housing Boom and Bust Report 2021, released by SQM Research, the rise in dwelling prices in 2021 will be the result of the previous year’s aggressive government stimulus, interest rate cuts and the upcoming changes to responsible lending laws.
According to SQM Research managing director Louis Christopher, Perth’s predicted solid growth this year will be on the back of an ongoing recovery in the base commodities market, further encouraging mining-based project investment.
With Perth’s economic growth continuing on its ascent, and people flocking to Perth to take advantage of the many job opportunities, the demand for property has increased. While many people buy property as a home first, they also want to see the value of their asset increase as the years go by, so that should they decide to sell, they will receive a good return on their investment.
Investment properties in Perth regularly show comparatively higher gross rental rates than those in Sydney and Melbourne (5.82%, 5.14%, and 4.83%, respectively).
POINTS TO CONSIDER AS AN INVESTOR
- Rental values
- Bottomed-out interest rates
- Western Australian State Government has invested more than $17 billion in infrastructure projects across the city.
- Rental Shortages
- New recommendations for Property Reforms
- High yields
Affordability, strong rental demand and high yields play major role in encouraging investors back into the Perth property market. After several years of low investor activity, especially among interstate investors, buyers who enter the Perth market are well-positioned to benefit from forecast growth.