An overwhelming percentage of Australian property investors are expecting the Perth property market to produce the goods over the next three years, according to new data.
Of 401 property investors surveyed, 37 per cent rank Perth as the best place to invest in the next 12 months, and 61 per cent rank the capital city as the property market with the highest growth potential over the next three years, research from property investment consultancy, Momentum Wealth, shows.
Brisbane ranks second, with 26 per cent of respondents singling it out as their preferred location for investment.
Perth’s property market: By the numbers
Perth saw modest house price growth for the month of January, CoreLogic figures reveal.
The index results at January 31 revealed Perth’s house prices rose 0.1 per cent for the month, and rose 0.4 per cent for the quarter.
House prices were down 5.7 per cent annually, with the median house price value sitting at $440,965.
In the past 12 months, Perth has seen house prices drop 5.7 per cent, and fall 19.8 per cent in the last five years.
So why Perth?
While Perth’s market looks all doom and gloom, Momentum Wealth’s buyer’s agent leader, Emma Everett, said a combination of affordability, improving rental conditions and positive future indicators are turning investors’ heads.
“While Brisbane’s property market has been recording steady growth for some time, continued improvements in rental conditions and a significant tightening of stock in Perth’s housing sector are now driving the consensus that the property market is moving into recovery phase, with savvy investors realising the counter-cyclical opportunities at hand,” Everett said.
“At the same time, longer-term indicators such as rising activity in the mining sector, increased infrastructure spending and early signs of accelerated population growth in Perth are providing healthy indicators for the market’s future performance, with the latter in particular expected to drive higher levels of demand in the medium term,” she said.
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