The West has bounced back from COVID-19, with its strict border controls keeping the economy bustling in the face of a brutal pandemic. With restrictions now easing, and interstate travel to the mining state now resuming, there’s a huge opportunity for investors to partake in a real estate market boom Perth has been waiting almost a decade for. Property investment in Perth has never been more popular.
Why invest in Perth?
Perth property market
Home values in Perth’s property market increased 13.1 per cent during the 2021 calendar year. Low stock levels and high demand fueled remarkable price growth, and its expected there’ll be another year of healthy price growth in 2022. With interstate migration tipped to dramatically rise with the opening of WA’s borders, demand for high quality Perth housing will only sustain its recent levels.
But still, investment properties in Perth remain affordable. Perth has one of the lowest median property prices in the country, sitting at $520,000 as of this writing. WA is far more accepting of investor capital, with even Brisbane – a city often compared to Perth – touting a $783,000 median property price after a 30.4-per cent housing price increase in the 12 months to December 2021.
The median time to sell a property in December 2021 was 14 days, an entire week faster than 12 months prior. Property prices are expected to continue rising in 2022, with long-term capital uplift forecasted to be significantly higher than the preceding 10 years.
Price point entry for a Perth dwelling is around $750,000 and gross yields are sitting at approx. 3.2 per cent.
Perth top suburbs to invest
Investors wanting land-rich suburbs, with development/subdivision potential in AAA-rated precincts, should consider the below areas.
Maylands sits 4.5 kilometres northeast of Perth, near the bustling locale of Midland. Its nearby amenity, including a popular golf course and key transport nodes, has bolstered the suburb’s popularity in the last decade, particularly for younger occupants. It’s achieved steady annual growth of 2.3 per cent in the last 10 years. Maylands saw a 9.10-per cent increase in median price in the 2021 calendar year, its median price rising from $660,000 to $720,000.
Willetton once reflected the west’s relaxed demeanor, with the once-quiet suburb now thriving after several decades of steady growth. The southern suburb is bound by busy arteries Leach Highway to the north and Roe Highway to the south. The northern precinct of Willetton is occupied by industrial tenants and some commercial land use, which has strengthened local council coffers and created significant amenity for Willetton’s residents.
Willetton achieved a 17.1-per cent increase in its median property price, with the current median sitting at $820,000. Values rose steadily over the decade at 3.9 per cent per annum, far higher than Perth’s Metro Region 10-year growth rate which currently resides at 1.1 per cent. Detached houses make up 90.2 per cent of the property types in Willetton, with its median weekly household income is $1,818, exceeding Perth’s median of $1,643.
Mandurah is certainly among the most popular Perth suburbs in 2022. At a very affordable median price of $312,000 and promise of considerable development in the coming years, it’s no surprise more investors are flocking to the heart of the Peel district for their next residential property investment.
An annual value growth rate of 20.2 per cent as at March 2022 has dwarfed its 10-yaer growth rate of 0.8 per cent, perhaps indicating further rises in the future. Mandurah boasts a significant amount of quality primary and secondary schools, with a train lining stemming all the way to Perth city and beyond.
Bayswater saw its median prices increase 10.4 per cent in the 12 months to December 2021, bringing its median to $629,000. Bayswater is located seven kilometres from Perth CBD and sits in a pack of high-growth suburbs, including Maylands and Morley. The residual interest for these suburbs appears to be flowing into the smaller precinct of Bayswater, giving it plenty of reason to be a solid up-and-comer.
With globally recognized Scarborough its neighbour, Doubleview has received considerable attention from residential property investors. The near-coastal suburb saw a 14.5-per cent increase in dwelling values in the 2021 calendar year, with its annual median price currently sitting at $822,750. There is certainly room for this median to move.
A large flight to quality has seen Scarborough bolster in popularity, resulting in extremely scarce supply for those looking to acquire subdivisible land. Residual demand has turned to Doubleview, which offers more opportunity for development albeit with still low supply. Investors can expect to enter the market with a $700,000 purchase, with higher-end established dwellings hovering around the million-dollar mark. An array of primary and secondary schools litter the area, including Hale School, Churchlands Senior High School, and Newman College.
How to invest
There’s little time to waste if you’re considering entering the Perth property market. Investors are seeing once-in-a-decade growth opportunities, particularly if willing and able (and privy to the right networks) to buy subdivisible land.
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