Perth Property Market Update
Perth is a picturesque city overlooking the Indian Ocean; it makes a beautiful place to live for young families, retirees and young professionals alike.
With the property market experiencing a downturn in Sydney, Melbourne, and other major cities, Perth has also undergone a slight decline; however, property pundits believe that the market will experience a steady upturn in 2019 and beyond.
Perth Property Forecast 2019
With reference to the QBE Australian Housing Outlook for 2019-2021, the overall prediction is that Perth’s property market should experience some notable growth halfway through 2019 and through to 2021.
There are some crucial things to consider here such as:
- APRA credit restrictions
- Reserve Bank could decide to raise interest rates if the markets are stable in 2020
- Trade conflict between the USA and China over Iron ore could directly affect Perth’s housing market because Perth’s iron ore industry has recently seen an improvement.
- If the Labour government passes a Negative Gearing Repeal, this might have an impact on rent prices.
Regardless of the issues mentioned, property experts predict that Perth’s property market will experience a positive upturn in the next two to three years.
Perth’s Property Prices in 2019
QBE’s predicts that Perth’s housing prices will drop -1.7% halfway through 2019, increasing +1.9% at the start of 2020, and 4.8% in 2021. The median house price in Perth will level out at $550,000.
These figures indicate a 5% growth between 2019 and 2021. With the mining industry growing at a steady rate, more and more investors could be setting their sites on Perth in the next two years.
With a decline in the property markets in Sydney and Melbourne, property experts predict that the Perth property market could be one of the fastest growing markets in 2019 and 2020.
When the mining industry saw an upturn in previous years, there was a significant demand for unit style housing. However, when the industry experienced a sharp decline, the need for units drastically declined.
As a result, there has been a sharp unit price slump, with prices falling -5.4% in the past year. Prices are set to increase by approximately 2% by 2020.
The last year has seen a 1.0% population growth rate increase; also with an imminent mining industry revival, the oversupply problem could well be a thing of the past.
Best Suburbs To Invest in Perth 2019
House prices are relatively low in Perth at present; however, with forecast growth over the next two years, Perth could be a viable place to invest in property over the next two to three years.
Which suburbs should property investors be setting their sights on?
Stirling and East Fremantle
Stirling and East Fremantle experienced 1.9% growth whereas inner-city Perth experienced a -0.9 % decline. Outer Perth suburbs dropped -2.6%. Properties can be purchased for under $450,000.
Other suburbs to watch:
With the impending mining industry upturn and steady population growth in Perth, it could experience some notable increase in the next two years.
Property investors should keep an eye on the factors mentioned in this article that could have a direct impact on the property market such as interest rates, the trade conflict between the USA and China and possible policy changes.
That being said, Perth is looking like a viable place for property investors to set their sites on.