Perth's Real Estate Market: A Great Investment Opportunity

Investing in real estate is always a good idea, provided that you make a well-informed decision. In the current economic climate, Perth offers a great opportunity for real estate investors. With the median rent rising to a record $535 per week in February and the vacancy rate at a mere 0.7 percent, the rental market is highly competitive. As a result, investors can expect to earn high rental yields and steady returns on their investment.

Perth’s property market has remained stable despite the global economic uncertainty. According to the Corelogic home value index, Perth’s home value index decreased marginally by 0.1 percent in February, down just 0.2 percent since November. This indicates that Perth’s property market is relatively stable and resilient.

Moreover, the demand for housing in Perth is increasing rapidly, driven by a growing population and a limited supply of rental properties. It is suggested that the state needs between 18,000 to 20,000 new rental properties in the coming years to compensate for the 19,000 rental properties that have been removed from the rental pool in the past two years. This demand-supply imbalance presents an excellent opportunity for investors to benefit from capital growth as the market recovers and property values increase.

Furthermore, the Western Australian government’s recent announcement of an $80 million Infrastructure Development Fund to assist local governments and developers in offsetting the costs of providing water, sewerage, and electricity services to new housing developments is likely to boost housing supply in Perth and the regions. This is a positive move for investors who are looking to invest in new housing developments.

In conclusion, the current economic climate in Perth, presents a great opportunity for investors to invest in the real estate market. With stable property prices, high rental yields, and a growing demand for rental properties, investing in real estate in Perth can provide investors with steady returns on their investment. If you already have a property investment in Perth, now is a good time to hold on to it and take advantage of the rising demand for rental properties.