Perth Property Investment

First home buyers are said to be very active in the Perth property market, especially in the "up to $500,000 price range". However, there appears to be very little activity in other areas of the Perth property investment market.

It is expected that Perth will not see much in the way of growth in the 12 months ahead. Consequently, property investors are more and more seeking opportunities on the other side of the country, especially Brisbane and Melbourne property.

Its reported that due to rate cuts, properties are being taken off the market and rented out in preference to reducing selling price. This in turn is affecting the rental market as the number of houses available for rent increases.

Following Perth's phenomenal growth over the last 10 years, the housing market is now quite subdued with buyers expected to remain on the sideline for most of 2010.

Projections: 2010 and beyond

Baby boomers are driving property sales in lower price properties as much as first home buyers. Figures show that baby boomers will play a key role in the WA real estate market in the years ahead. Figures from the Australian Bureau of Statistics show that almost a quarter (23 percent) of Western Australians will be aged 60 years and over by the year 2021, compared with 15 percent in 2001.

A trend of investors moving back into the property market in 2010 should occur because of rising rental returns and the view that lower priced homes have reached the bottom of the market. In addition, many investors are reluctant to invest in the stock market because of the international financial situation. Whilst rental yields have improved in some areas of Perth, investors are showing increasing interest in the Brisbane property market due to growth potential. According to figures recently released by the Australian Bureau of Statistics, Australia's population has grown to 21,542,000, an increase of 389,000 people over the previous year. Queensland received by far the most people from net interstate migration gaining 22,700 people from the other states and territories.