Welcome back to the sixth installment of Phil's Property Corner, brought to you by Phil Bertram - the owner of Candour Property Group.
I hope you had a great Christmas and New Year. 2018 has already seen the Perth property market jump off to a strong start. The number of listings on the market is 1,400 less than the same time last year at 13,134 (as of 9th January 2018) and there were 465 property transactions in last week alone.
Following on from last month, results have been published from another survey that measures market confidence. The Australian Property Council, partnering with ANZ, releases quarterly reports that measure confidence in state economies and property markets. In the past 12 months there has been a huge improvement to the expectations of performance in the Perth property market and economy. NSW has long been the leader, but NSW and Victoria are now finding their expectations for future strength reducing, with Perth seeing regular improvement to now be on par with NSW. You can read about it here and if you’re in the mood to look at the full 28 page chartbook (showing results for their numerous survey questions by state) you can find that here.
It continues to highlight the trend we’re experiencing in WA and it’s being backed up by activity in the local property market. We know that the Perth market is very much driven by consumer sentiment, and that in many cases people have put off their property purchases in Perth while waiting to see what will happen next. WAToday published an article on 4th January 2018 with some very poignant observations.
A short excerpt – “That pent-up demand is from buyers who have put off buying in Perth, they weren’t sure about their employment or they felt like it wasn’t the right time, and now they’re possibly seeing the market stabilising”. The full article is here and it goes on to talk about the positives of the new infrastructure being constructed in Perth (in select areas) and the reality that with Sydney and Melbourne “coming off the boil” we could soon see Eastern States investors start to take advantage of opportunities in our much cheaper market.
It’s worth remembering that only 6 years ago Perth’s median house price was only $105,000 less than Sydney’s median house price. Since then, WA has experienced many negative economic events that crumbled confidence and stalled the Perth market. There are positive signs that most of these negative factors have stabilised or are improving, and the surveys are painting the picture of increasing confidence mirroring these improvements.
We have started to get a bit of enquiry from Eastern States based clients, mainly NSW at this stage. For them it’s a compelling proposition that they can purchase 2 investment properties for the price of 1 in NSW. With a positive yield on both investment properties rather than a negative yield on the 1 that they would purchase over there. When you couple that with the reality that investment properties can be purchased for well under current market value it makes for attractive opportunities for savvy investors.
If you would like to know more the first step is to have a chat with Phil Bertram who can book in an appointment for you to find out how this works for your financial position. There is no obligation to proceed any further and he doesn’t charge for his time. All strategies are implemented in tandem with your Mortgage Choice Perth Mortgage Broker.
To arrange for him to call you please email him with your name and contact number on firstname.lastname@example.org and he’ll be in touch.