Real Estate Perth

WA investors are set to reap a mighty harvest with the economic tsunami that is coming in Australia with a leading business forecaster predicting Perth house prices will surge almost 20% by 2014 as recently reported in The West Australian. The bullish house price prediction by BIS Shrapnel defies the prognosis by many analysts that malaise which has beset WA property for the past three years will continue for several more years. Senior manager and report author Angie Zigomanis said the economic conditions that helped propel house prices in Perth between 2001 and 2006 were about to return. The spectacular gains would not be repeated, but population growth and rising incomes would lift stagnating prices.

The outlook for real estate in Perth is very strong over the next three to ten years, there is currently $139 billion being spent on capital works in Australia in this year and another staggering $700 billion worth of projects in the resources sector planned for 2012 through to 2015.This inevitably means more jobs and higher wages which leads to an increased demand for residential housing. Recently, other economic forecasters have predicted the Perth property market will generate the highest capital growth over the next three to ten years.

Within the Perth property market there is a general oversupply in some areas, particularly the outer fringe areas with excess stock from the last boom. This means prices have fallen or have stagnated for a long period of time. At the same time some areas have strong growth predicted which means prices are holding, these properties are expected to rise first as we enter the new market upturn.

Rental prices have not moved significantly since 2008.Th vacancy rate was 1% in 2007 and it got as high as 4.7% in 2010.In the last twelve months the rental vacancy has declined to just over 3%,we see this as a return to normal market conditions. Vacancies rates vary from suburb to suburb do vary but overall we see rental returns increasing which is good news for the investors.

Steve Gillespie
Millionaire Property Makers Pty Ltd 26.8.2011.