Perth property investment in 2017 covers a very large metropolitan area, the periphery of the Perth metro area in new suburbs is potentially the most susceptible to the price correction but until we see a surge in the mining sector Perth property is expected to show limited growth.
There’s no sign of the Perth property market bottoming out as yet. There are very low levels of consumer sentiment owing to a raft of well-documented issues on local, national and international fronts and a growth model following price sectors is likely to continue.
Within the now-dragging property price performance, capital gains have been restricted to high-quality, in-demand suburbs close to the CBD, but an ‘X-factor’ goes some way to enhancing the performance of some locations.
Generally areas with a special ‘point of difference’, whether it be proximity to Perth’s pristine coastline, popular café/entertainment precincts or strong educational/community infrastructure. Lesser regarded areas appear to have been affected by the recent contractions to a much greater degree.
Perth property is currently a buyers’ market, it’s difficult to pick where the peak of capital growth sits geographically at present. He says some cashed-up buyers are jumping on the opportunity to purchase in quality localities with the view to enjoying gains come the next upswing.
Overall in 2017, Perth property investors seem to be honing in on those areas with solid public transport, plus other services and infrastructure.
Future urban infill is likely to closely follow areas well-serviced by transport. It’s a good time to perhaps secure a strategically located site with potential for future redevelopment on the back of this.
In the north, Padbury and Craigie as options for investors looking for a development site with some capital growth potential. The north-east corridor presents an opportunity for first homebuyers and investors in smaller apartments at or below suburban house values with lifestyle benefits on your doorstep, transport, good coffee, small bars and restaurants. Examples are Mount Lawley and Rivervale.
In the south, opportunities exist for investors and upgrade buyers to purchase apartments and homes close to infrastructure including Kwinana Freeway, TransPerth train and Cockburn Gateway Shopping Centre in Success, Aubin Grove and surrounding suburbs.
You could be in for a wait, however. Ptolomey says agents are reporting the buyers’ market is entrenched for the short- to medium-term, although solid eastern capital performance could boost his city’s prospects.
If the Sydney or Melbourne property markets continue to grow we’d expect a recovery to occur sooner rather than later as Perth property would invariably become relatively attractive from a price point.
Perth property investment has had a disappointing year over the past 12 months, there’s no doubt. If ever you needed numbers to check out what a downer it’s been, have a look at the statistics used to generate our growth wave map. The majority of “best performing” suburbs saw a fall in their median value.
The plot points reveal Perth’s waterfront acts to distort the traditional concentric circle growth wave. The surge seems to push both away from the CBD and inland from the shoreline.
Recent price growth results have been very average for Perth. While not predicting an upswing anytime soon, there’s sunshine on a distant horizon.
That value aspect will start to kick in to Perth, but where that falls will be is in lower prices areas rather than aspirational areas.
The south and southwest property markets have appeal because Perth actually has quite a healthy first-time buyer market.
First-time purchasers make up about 20 per cent of Perth’s buying activity, so be watching the suburbs that appeal to this sector closely.
Further out in Perth, if you’re looking for capital growth opportunities, may be an area to consider for property investors in 2017/18.
Perth property buyers should always take a long-term view because nothing much is going to happen any time soon in terms of property value gains.
Perth is going to need a lot to go right and it’ll be a long time before it gets back to its glory days of three or four years ago.
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