Activity surges 30 per cent in two hotspots
Investor activity in Perth and Darwin soared more than 30 per cent during 2013 compared to the same time last year, according to an Australian tax depreciation company.
Paul Bennion, managing director of DEPPRO, said the number of tax depreciation reports undertaken in the two capital cities increased by more than 30 per cent during the first months of this year compared to the same period in 2012.
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"DEPPRO is now recording very strong activity by property investors in both cities with Perth now the stand out performer achieving the highest turnover for tax depreciation reports of all DEPPRO offices in Australia,” Mr Bennion said.
“In particular, we have seen a surge in activity by external investors purchasing properties in Perth and Darwin because of the high rental returns properties in these cities are delivering, as well as an upswing in capital growth rates.”
According to Mr Bennion, both capital cities are now recording the fastest growth in weekly rents in Australia due to the influx of new workers in the resources sector, who are creating stress on supply.
"In Darwin, median weekly asking rents for units surged by nearly 20 per cent during the past year while in Perth they surged by 14.3 per cent. In contrast, the other major capital cities in Australia recorded modest or stagnant rent price increases.
"Both Perth and Darwin also offer property investors the highest rental yields of any capital cities in Australia for units, at 5.77 per cent and 6.22 per cent respectively.
However, he expects that other capital cities will also improve in the second half of 2013 due to low interest rates, in particular Brisbane.
“The Brisbane property market is primed for growth due to the fact that property prices have undergone a downward market correction over recent years and are approaching the bottom of their current property cycle," he said.
