First-home buyers will reap the most benefits out of the markets in Perth in 2018 as the capital city offers low rates and cheap properties across its different suburbs.
These coastal suburbs boast population growth, new infrastructure and affordable assets close to the ocean—a “trifecta” of factors that contribute to their impressive growth.
House and land packages in Yanchep costs around $330,462, while properties in Two Rocks can go for as low as $266,900, Mr Rendell said.
Aside from beach suburbs, investors can also find cheap assets in these suburbs:
From seeing its “worst cycle ever” in the past two to three years, the capital city is now being tagged as one of the better-performing markets with the best potential for growth.
The improving economy of Western Australia has attracted first home buyers and new investors alike, so much so that a 30 per cent jump in property buying activity has been recorded in the last quarter of 2017.
Mr Kempton highlighted: “There were sharp falls in settled sales in Melbourne (-13.7 per cent) and Sydney (-9.4 per cent), which is a clear sign these property markets have peaked and are on a downward correction. Settled property sales also fell sharply in Brisbane (-12.0 per cent).”
“In contrast, the number of settled sales in Perth went against this trend and rose by +1.4 per cent over the past year, along with Darwin (+3.6 per cent), Hobart (+0.3 per cent) and Adelaide (+1.9 per cent),” he added.
This trend is expected to continue as demand for properties in Perth increases over time.
Moreover, since there have been declines in new home construction, the level of demand is expected to surpass the supply available in the city, which will give way to the eventual growth of real estate assets.
Despite good predictions for the future of Perth property markets, Mr Kempton reminds investors that, at the end of the day, it’s best to take a long-term approach when investing in the city.
After all, Perth remains to be a recovering market that is yet to reach its peak.
According to the property professional, a 20-year plan will be ideal as the population is expected to rise to 3.2 million to 4 million by 2038—a fundamental that will ultimately be a growth driver.
Over the course of two decades, he predicts that property values across Perth markets could double.
Mr Kempton said: “Perth is now a mature capital city, and by 2036, it could nearly be the size of Melbourne based on the more optimistic population projections.”
“Smart property buyers who purchase a property now in a high-demand area will be assured of achieving capital growth over the next two decades as the population of the city expands,” he highlighted.
Among the best suburbs to buy for long-term growth, according to him, are suburbs near the city centre, river and ocean, like Tuart Hill and Yokine, where properties are priced at under $450,000, as well as Rivervale, , , Wilson and Ferndale.
This information has been sourced from the CoreLogic, realestate.com.au and The Smart Property Investment website.