Perth Property Market: The Next Big Thing You’re Missing Out On!
Every property investment success starts with data-driven and up-to-date property market insights.
A property investment journey can be daunting and challenging at first. So, you need to know where to invest in a rental property and which areas with the best-selling prices give you guaranteed peace of mind when it comes to property purchase.
Considering property investment factors that may affect your property investments is crucial. That is why you need the latest insider view on the Perth property market to make your property management much more accessible!
Property Market Update 2024
As the pandemic pushed people out of their limits and with surging house prices, Perth remained firmly in place for sound property investment.
However, there is a chance that gross rental yield might fall to a new record low across Australia, reaching 3.2%.
For the past few months, every capital city has been recording low yields; the lowest yields remain in Sydney (2.4%) and Melbourne (2.7%); however, the Perth property market has remained stable.
Perth property prices increased by 13% in 2021, and it is expected to jump another 10% in 2022 as Western Australia’s border is reopening.
However, the prices are expected to grow in 2024. The growth will be driven by major population growth, ongoing infrastructure, and robust economic conditions.
Perth Property Investment – Sales And Rental
As property prices increased in the Perth market, the national housing values recorded an annual rise of 22.1% compared with a 9.4% rise in rents.
The rental yields decreased as a natural consequence with an overall downward trend last year, but the number for rent has more or less started to flatten.
More tenants wanted to get out of high price, expensive house renting and wanted to own houses in an established suburb around town.
If you are looking for property investments, there are undoubtedly opportunities in most property markets around Western Australia.
There are property sales services in Perth that can ensure you get the best selling price while they handle all the stress for you.
They can give you Perth property insider tips and help you find property investment in family-friendly areas with good locations, schools, and amenities.
Will Perth House Prices Drop?
Across Australia, thousands of first-time homebuyers, and tenants, are wondering if house prices will ever drop.
However, it is known that With Western Australia’s border reopening, property prices are expected to rise again in 2024 (not a piece of good news for home buyers and tenants).
House prices in Perth will probably drop only if the interest rates go up. Some property investment analysts are betting that the interest rate will rise in 2024.
That would be good news for home buyers and renters, as housing values can drop. However, some investment property analysts warn that if the new COVID variant worsens, they fear house prices could rise in the double digits again next year.
Common Factors Affecting Property Markets
Various factors are influencing the Perth property market. Understanding such factors can help you make informed decisions if you are a buyer, seller, or investor.
Let’s explore some of these elements shaping the Perth property market.
Location
Tenants and first-time homebuyers always consider the location of property investment. For the past few years, properties in the capital city have been highly sought-after locations. However, a lot changed during the pandemic. Many people are leaving cities in favor of more suburban spaces.
The following are some of the location factors that can drive up property prices:
- Property neighborhood
- Property amenities like restaurants, schools, playgrounds and attractions
- Proximity to public transportation, shops, stores and malls
Interest Rates
Interest rates impact the price and demand for real estate investment. A property with lower rates brings in more buyers. However, it also expands the market for real estate, driving up property prices.
Another factor affecting interest rates is the Federal Reserve System (FED). The property investment process will increase if the FED raises the federal funds rate and mortgage lenders.
Investor Lending By State
Property investment prices follow the cycles of the economy. However, investors can mitigate this risk by buying real estate investment trusts (REITs), which affect real estate prices.
Policy Changes
There are several Government policies as well as legislation, such as tax incentives, deductions, and subsidies. These can boost or hinder demand for real estate.
The Value Of Getting A Property Rental Appraisal In Perth
So, are you thinking about renting out your property in Perth? Well, that’s a very smart move! The property market in Perth has been growing very steadily, and along with that, the rental demand is also getting higher.
However, before you start advertising your space, it is necessary to ensure that you are not skipping “a property rental appraisal” step.
Why Is It So Crucial?
Well, the rental appraisal mainly gives you a very realistic estimation of what your property will likely be for rent in this current real estate in Perth. This information becomes very valuable when setting up your space for rent.
If you price your property too low, you might leave a lot of money on the counter. On the other hand, if you price it a little too high, you might struggle to find the right tenant.
So, if you are serious about renting out your property in Perth, do not forget to get a rental appraisal. It is more like a small investment that can help you in the long run.
Tips To Survive And Thrive When Purchasing Property
Even if you have the latest insider view of the Perth property market, the property investment journey could still be daunting. It’s so easy to be discouraged. However, having a mindset of resiliency will help you win and survive.
I will provide some of the tips to have a smooth property purchase.
Firstly, map out all your goals. Try to create a robust business plan and take care of all the stuff on your real estate “to-do list.”
Secondly, as the property market moves in a cycle, make sure to maximize all your properties’ returns while you still can. Don’t let adversity knock you down but face it head-on.
Thirdly, upgrade your home today or buy an investment property in a well-located area. They are likely to be affected by the economic crisis.
Lastly, make sure to revisit your interest rates. See what you’ve got ahead of you with the increases in rental properties. Try to hang on as the upside in the next two to three years, which will be great for house price growth.
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