Perth is becoming a bright spot for real estate investors looking to expand their portfolios.
Momentum Wealth Finance team leader Caylum Merrick said recent market indicators point to a strong outlook for Perth.
“As property values in Perth have shown continued growth over the past 12 months, many owners have taken advantage of an increase in equity in their property and see this as an opportunity to reassess their financial position,” he said.
A recent report from CoreLogic showed an 18.1% annual increase in house prices in Perth.
This supports the findings of a recent survey by the Real Estate Institute of Western Australia (REIWA), which found widespread recovery across all price ranges.
In fact, the top 50 performing suburbs for median price growth over the year to September consists of 21 suburbs at the bottom of the market, 16 in the mid-market, and 13 prime markets.
Best performing markets
Bicton recorded the most robust price growth in suburban Perth in the year to September, with gains of 35.7% pushing the median price to $1.25 million.
Astot and Claremont followed, posting gains of 30.7% and 30.6% respectively.
Other suburbs that showed stellar growth over the period include Salter Point (29.4%), Cottesloe (25.4%), Medina (24.9%), City Beach (24.1%), Wannanup (23 .2%), North Beach (23.2%) and Stratton (23.1%).
Investors increase their market share
Figures from the Australian Bureau of Statistics (ABS) showed that investor lending grew by 86.35% per annum in August 2021.
Mr Merrick said this is a reflection of increasing demand from investors, both existing and start-ups, who want to take advantage of rising prices to fund an investment purchase, while interest rates are at record lows.
“We have also witnessed similar growth in investor demand, with many investors recognizing the unique opportunity to leverage both growing conditions and strong rental yields, while Perth continues to offer some of the most competitive rental income in the entire country,” he said. .
Mr Merrick said investors should take advantage of not only the current conditions in the Perth market but also the expected growth.
“There is no sign that the current growth phase has run its course, with increased mining activity, widespread skills shortages and continued low inventory levels all fueling market growth,” he said.
“Investors trading now will likely be in a stronger position to absorb further increases in demand associated with the easing of border restrictions.”
Photo by Nathan Hurst on Unsplash.
Top Suburbs: crossing ropes, glendenning, goulburn, westmead, the basin
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