Perth Property Investment

Perth property investment markets heading for upswing says SQM. According to SQM Research managing director Louis Christopher, the capital cities of Australia’s resource states look set to lead the property market recovery.

Mr Christopher places Brisbane houses and units at six o’clock, on the property clock, indicating the market has bottomed out and Perth houses and units at 6.30 indicating the market has just bottomed out and heading into an upswing.

His assessment of the Perth property investment market is based on falling listings and a tightening rental market. Perth house land and unit property prices have stabilised. Apart from Darwin, which currently has a vacancy rate of 0.5 per cent, Perth has the tightest rental market in Australia.

This tightening vacancy rate resulted in median house rents increasing by $10 to $450 per week over the August quarter, according to the latest REIWA data. SQM Research also found that Brisbane’s online residential listings are down 8 per cent year-on-year to September, pointing to a tightening property market while the vacancy rate is at a low 1.5 per cent.

Investors looking to get into the Sydney market at the bottom of its cycle may have missed out, according to Christopher. Christopher has Sydney houses at seven o’clock on the property clock, with units slightly further ahead at 7.30, indicating houses are well on their way to rebounding. Sydney units are thought to be slightly ahead of houses in the property cycle due to the introduction of the $15,000 first-home buyer bonus which applies to new homes, including apartments, marketed off the plan.

Darwin is assessed as the only capital city market that has already rebounded (at nine o’clock) and heading towards it its peak.

Projections: 2013 and beyond

The Perth property market will be influenced by the fact that Western Australia is home to Australia's fastest growing population and now represents around 10 per cent of Australia's population.

2013 will start to see a general trend of investors moving back into the property market because of rising rental returns and the view that lower priced homes have reached the bottom of the market.

Contact us for more information on recommended suburbs and locations in the Perth property market.