Investors Keep Both Eyes Glued To The Perth Property Market
Keeping a finger on the pulse of movements in the property market is essential for anyone seeking to build a new custom house in Perth. First home buyers will likely be cautious to ensure they’re getting good mortgage rates, while investors will want to keep their purchases limited to properties that are likely to accrue equity.
WA building approvals rose 0.4 per cent in May.
The current state of the Perth property market
Now, it’s no great secret that the Perth real estate industry is going through a rough patch. The average house value dropped 0.86 per cent in the last year, according to figures collated by CoreLogic RP, with both residential and commercial building vacancies on the rise across the board.
However, it’s not all bad news. While many states experienced falling approval rates in May, the Australian Bureau of Statistics found that Western Australia went against the trend, with approvals rising at a modest 0.4 per cent. It may not demonstrate stunning growth, but it does show that there’s still life in the market.
On the surface, things look challenging, but could these tough times actually provide an ideal incubator for investors looking to expand their Western Australia property portfolios?
Slipping house and land prices are creating a buyer’s market
Late last month, the Australian Financial Review reported that there were more than 14,000 houses, units and blocks for sale in the metropolitan Perth region. These impressive numbers put the ball in the buyer’s court, and whether you’re interested in purchasing an inner-city apartment or building a custom luxury home, there’s a good chance you’ll able to pick up a great value deal.
Gavin Hegney, Founding Director of Hegney Property Group, believes that investing in Perth property is safer than entering the market in other cities around Australia.
“I think there’s less risk of buying into Perth today than buying into the Sydney market. I’d suggest that whatever fall that’s going to happen in Perth in the next 12 months, the fall will be larger in Sydney. At some stage in the next 12 months it will be the perfect buying market in Perth,” said Mr. Hegney, speaking to Domain.
If land prices continue to drop, it could indeed be a fantastic opportunity for anyone looking to build a new home in Western Australia. Capitalise on these promising market conditions by sitting down for a chat with Perth luxury home builders, Exclusive Residence, and find out how we can help you create an investment home tailored to your exact requirements.