Is now the right time to invest in Perth property?
The real estate market is being hailed an unexpected winner of the COVID-19 pandemic with record low interest rates, tight stock levels, heavy competition and boom-like conditions continuing to drive up price growth.
But the key question remains: Is now the right time to invest in Perth property?
Mont Property Managing Director Matthew Podesta said there were many positives to purchasing a property in Perth now, but it’s important to consider a holistic view of the market conditions before taking the plunge.
Here, we’ve put together some key factors to consider if a property investment is on the cards for you in 2022.
While Perth has experienced an 11.2% increase in home values in the past year, the rate of growth is not anywhere near what has been seen on the eastern seaboard where Brisbane, Sydney, Hobart, Adelaide and Canberra have all recorded more than double that figure.
At the end of the day, housing affordability is a key criteria to consider when making a property investment and Perth’s median property prices are relatively affordable compared to other Australian cities.
CoreLogic data shows the median house price in Perth – $555,851 – is the lowest of every Australian capital city, making it the most affordable city to buy a new home.
The median price for units in Perth is $401,647, second only to Darwin which is the most inexpensive capital for units and apartments with a median value of $370,335.
Across both the house and unit markets, the median dwelling value in Perth is $531,243.
When you compare these prices to the likes of Sydney where the median house price is $1,389,948, Melbourne at $1,002,464 or even Hobart at $759,697, Perth presents a more inexpensive option
Australia has been riding the record-low interest rate wave for some time now, and we’ve been warned the time is nigh for a rise.
The Reserve Bank of Australia’s announcement about a potential cash rate rise later this year has worried some prospective buyers who are concerned about the additional risk.
But despite all the talk of surging interest rates, they are still very low and very affordable – and any increase is unlikely to have an immediate impact on borrowers.
Whether you love or loathe Mark McGowan’s ongoing border closure decision, Perth has been the envy of many cities around the globe given we seem to have been immune to much of the pandemic heartache to-date.
While the indefinite border closure decision has become more controversial in recent months, the lockdown of state boundaries has meant we’ve largely been able to continue on our merry way without continued tough restrictions over the past two years.
It’s also meant fewer overseas and interstate holidays so people have invested heavily in the property market and home renovations with their additional savings. So presumably the chances of finding a beautiful, freshly renovated home that’s ready to move into is much higher.
Nothing but blue skies
Perth people have long enjoyed the spectacular beaches, relaxed lifestyle and perfect climate of living in this beautiful city, but now it’s official.
Perth was crowned Australia’s most livable city in 2021, according to Ipsos’s annual Life in Australia survey.
The ‘livability index’ assesses 16 attributes including housing affordability, employment prospects, healthcare, road congestion and educational opportunities – and Perth scored average or higher on 14 of the 16 criteria.
So, now may be just the time for the rest of the world to see what a great place Perth is.
The team at Mont are experts in Perth property. Contact us today to learn more.