Perth property prices to rise by 6% says prominent forecaster
“ We don’t expect a Blast off of rocket proportions but we do expect that we have turned the corner and a selective property purchase and investment will be a wise choice if you’re looking to get in at the bottom of the market while there is still some good bargains available.” Contact us “
House prices in all capital cities across Australia are expected to surge in 2020 – and according to some forecasters, 2020 is likely to be the beginning of a lengthy period of price rises.
While Sydney and Melbourne are expected to rebound by double-digit figures next year, it is interesting to note that Perth prices are expected to turn from the dour period it has had since 2014, to enjoy a 6% increase. According to CoreLogic’s head of research, Tim Lawless, the 6% increase following the 0.4% in 2019 will add $27,204 to the median value currently sitting at $453,393.
Much of the increase is expected to be driven by expectations of the Reserve Bank of Australia cutting the cash rate in the first half of 2020 to a new record low of 0.5%.
Mr Lawless is predicting that a reduction in standard variable mortgage rates, following the RBA’s adjustment to the cash rate, will result in investor landlords being able to service a loan with rental income and in some cases make a cash flow profit.‘As a result of this, investors are likely to be motivated by prospects for capital gain, as well as the fact that gross rental yields, although generally low, are likely to be higher than the cost of debt,’ Mr Lawless said.
From our observations there is already a gradual resurrection of interest in investing in property in Perth.
This has been fuelled by an increase in demand for rental property to the point that the Perth vacancy rate has been hovering around 2.5 – 2.3% for much of 2019 and as a consequence rental prices have increased in many of the tightly held suburbs.
As buying agents, Buying Perth Real Estate sees its role to seek out the best investment property opportunities that the market offers.
In undertaking this, we stress to our clients that we always look for property that has potential for long term capital growth as well as having an immediate ‘rentability’ factor.
Sometimes it can take a fair bit of searching to find the ideal investment opportunity – but that’s how we earn our keep – finding property that the average punter either hasn’t the time or possibly sufficient knowledge of the local market. In addition to investors, first home buyers, home upgraders, home down sizers, Australians working overseas and overseas buyers can all benefit from our services.As a footnote we strongly urge those who are interested in buying in the near future to contact us because the sooner you make your purchase, the more you will save.
In other words, prospective purchasers who snooze for much longer are highly likely to lose by having to pay more in a rising market than what they would have by acting promptly.
“We don’t expect a Blast off of rocket proportions but we do expect that we have turned the corner and a selective property purchase and investment will be a wise choice if you’re looking to get in at the bottom of the market while there is still some good bargains available.”
For more information feel free to visit our website (Click Here) or contact me on 0412926190
~ Clive Elliott, CEO at Buying Perth Real Estate