The climate for property investment in Perth continues to be favourable, despite the apparent setback in housing prices. Figures for home prices in February were recently released, and the news is good for the overall market.
Statistics are showing prices in Perth did drop slightly. However in the market we are seeing properties sell quickly, above asking price with record buyer numbers at home opens and the number of properties on the market drop to lowest levels in 5 years.
So based on these observations we expect strong upward price growth to be reflected in the next quarters statistics.
By the numbers:
Many major cities are showing signs of recovery from the recent trough. Darwin had an increase of 2.3% in property values if for the largest rise, while Canberra was right behind at 1.9%. Melbourne continued its upward turn with a 0.3% rise, while Sydney had a rise of 0.1%. However, Perth, Hobart, Adelaide, and Brisbane all saw near identical decreases from 0.8% to 1.1%.
The reasons why:
Recent interest cuts by the Reserve Bank are credited for the rise in prices and a general rise in market volume. Prices also tend to rise with other market indicators such as employment and earnings begin to recover. Most economic indicators have improved across Australia, with real estate being the last indicator to show improvement.
There is also always a lag time between what happens in the market and what the statistics show and we expect the statistics to paint a much more positive picture for the Perth real estate market when the next quarters statistics are released.
What does the future hold?
The statistics should soon show price rises in Perth; the economy is too robust for them not to recover to their peak prices, and then begin a gradual rise. While property values are still somewhat subject to the peaks and valleys of the economy, real estate has proven, time and again, to be a solid, stable, and predictable investment over a period of 20 to 40 years.
It is time to buy
The current market represents an excellent opportunity to purchase Investment Property in Perth before things get too heated. Call 1300 472 427 or 08 9472 1606 today to learn more.
