Despite all the doom and gloom surrounding the Perth market, a significant number of areas in the city recorded positive capital growth over the past year.
Figures released by the Real Estate Institute of Western Australia (REIWA) for the first quarter of 2016 show that 51 Perth suburbs recorded an increase in their median house prices over the past year.
A high proportion of these positive-growth suburbs are in near-city locations where demand for property is traditionally strong.
The REIWA figures show that the apartment market also preformed positively in near-city locations.
Overall, the star performer in the apartment market was Shenton Park, where the median price of a unit during the March 2016 quarter jumped by 8.8 per cent. This suburb is attracting strong interest from property investors due to the soon-to-be completed $1.2 billion children’s hospital, which is expected to result in a surge in demand for accommodation by medical staff.
Other apartment markets that performed positively during the March 2016 quarter were West Perth (5.3 per cent growth) and Burswood (2.1 per cent growth). Both these suburbs have areas where Investwise has recommended our clients invest, due to their near-city locations and new infrastructure such as the new Perth Stadium which is currently under construction in Burswood.
These figures highlight the fact that even in a subdued property market, which Perth is currently experiencing, investors can achieve positive capital growth if they choose the location of their investment properties carefully.
We are now at the bottom of the property market in Perth, so you can only imagine how properties in prime locations will perform when the market begins to heat up.
Astute property investors who buy into the Perth property market now could easily be looking at double-digit capital growth per annum once the market rebounds, provided they buy wisely.
It is also worth remembering that the latest REIWA figures show that the median house price in Perth is just $520,000 (nearly half that of Sydney), meaning that property is now very affordable.
The Perth property market traditionally slows during the winter months, so we are now moving into a great window of opportunity for investors to buy property in Perth because there will be even fewer buyers in the market.
Property investors should target near-city locations with lifestyle attractions and planned infrastructure.
Daniel McQuillan has held senior positions in the property and financial services sector for over a decade. During that time he has gained professional qualifications and a wealth of experience that has enabled him to personally build a very successful property portfolio based on a targeted plan. In 2011, he established Investwise so he could utilise these skills to help other people create wealth through similarly devising a personal investment model that best suited their personal circumstances. As a result of this targeted and personal approach to property investment, Investwise is now one of the fastest growing property investment advisory services in Western Australia.
Further information can be found at www.investwise.net.au.