Top 10 Perth suburbs revealed
A resurgence in investor activity, low interest rates and strong commodity prices could spur on the Perth investment market, an industry expert has revealed.
According to Westpac, house prices in the west are growing, with the bank’s economist predicting growth rates of 18 per cent by the end of 2023.
The REIA also believes the Western Australian capital could grow, tipping an increase of anywhere between 6 and 10 per cent over the next 12 months.
Nu Wealth’s managing director, Daniel McQuillan, said there were a trifecta of factors that are leading to positive growth in Perth.
“Firstly, rental yields are surging in Perth, and in a growing number of areas are now approaching 7 per cent because of the rental famine in the city, with the rental vacancy rate now below 1 per cent.
“Secondly, investors are now enjoying much easier access to finance at very low rates due to greater competition among lenders. Astute investors can now secure investment loans at a rate below 3 per cent and immediately positively gear their investment property in Perth.
“Thirdly, house prices are reliably predicted to recover strongly in Perth starting from 2021.
Despite lower prices than on the east coast, property investors have still not returned to the market, with Mr McQuillan predicting this to change.
“Property investors currently only represent around 17 per cent of property buyers in the Perth property market, and as 2021 progresses, this figure should jump especially due to increasing interest from investors in the eastern states,” he said.
Top 10 locations for property investors
Mr McQuillan pointed to large-scale infrastructure projects as part of the COVID-19 recovery that may determine where property investors look to purchase property in 2021.
“Investors should be looking at locations that will outperform the overall market based on major new infrastructure spending that will drive up property prices,” Mr McQuillan said.
“For example, some $700 million will be spent on the new ECU campus in the inner-city part of Perth that will draw in 9,000 new students and staff when it opens in 2025.
“The massive investment in railway stations by the state government through the Metronet project will also create unique investment opportunities for investors in outer Perth suburbs that are currently undervalued.
“In addition, there will also be massive new investment in new roads, schools and medical facilities that will also have a positive impact on property values in specific locations in Perth moving forward,” he said.
Mr McQuillan nominated the following top 10 Perth suburbs for investors to focus on during 2021.
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