Calling it a little more than just a big mining town, one investor expert has tagged Perth as a good bet to take now, with solid fundamentals underpinning a solid outlook for WA’s often overlooked capital city.
Michael Beresford said while the fortunes of mining do play a large part in how performs, it is definitely not the only industry in Perth.
“It is a little bit more than a big mining town.”
He said that Perth has been flat for a long time, but that there is a major pipeline of infrastructure projects underway in the city.
“Specifically road and rail and large-scale shopping centers that are being rolled out in Perth over the next five years.
“There is a massive capital commitment from the government, and they realise that basically the more affordable capital cities where the majority of the jobs in Australia are going to be growing at a more rapid rate into the future than what Sydney and Melbourne are going to be.”
He said it is this that is “really setting Perth up”.
“It is nice to see state governments with a bit more foresight, being able to cater for the large population growth,” said Mr Beresford.
“There are about 17, at last check, major mining projects about to start in the next two to two and a half years.”
Mr Beresford said Perth is likely to remain stable without significant price growth for the next 12 to 18 months, but there may be some opportunity in certain pockets during that time.
Recent data from reiwa.com shows that Perth prices have rebound strongly in the June 2018 quarter, after having declined during the March 2018 quarter.
REIWA president, Hayden Groves, is also optimistic of the city’s turnaround.
“With the worst of the market downturn appearing over, the improvement in house and unit prices this quarter suggests buyer confidence is returning which should bode well for sellers as we move into spring,” he said.
“In addition, Perth’s median unit price is expected to lift by 4.9 per cent to $419,500, which is 2.3 per cent higher than the same time last year.”
Mr Groves said the data indicates that Perth’s median house price would settle at around $520,000, up 1 per cent against the March 2018 quarter and two per cent against the June 2017 quarter.