Recent reports suggest that Perth’s real estate market is bouncing back from its sixth downturn in 30 years, with house values being at their highest since 2005. Danger markets are disappearing, demand is catching up with supply, and the northern suburbs are currently leading the way.
Six months ago, Perth had virtually no growth areas, but 12 northern districts are seeing property prices rise steadily. Suburbs leading the way in the re-emergence of Perth’s real estate market include Carramar, Alkimos, Yanchep, Clarkson, Duncraig, Joondalup, Heathridge, Ocean Reef, Sorrento, Kingsley, and Innaloo Carine.
Is now the time to invest in property before house prices rise significantly? And, how can you yield the maximum return on your investment?
At Furniture Fitouts, we believe that there’s money to be made in property investing regardless of the state of the real estate market, but we’re excited about the prospect of Perth’s housing sector recovering. If you want to invest in a house but have too little time to rejuvenate its interior, we can source all the furnishings you need and complete the installation is as little as three days.
Why Is Perth’s Property Market Experiencing Growth?
Savvy investors know that the housing industry goes through a cycle, with bottoming out being the stage where supply outweighs demand and the upturn being the stage where property prices begin to rise once again.
It is believed that Perth is now entering the upturn stage, with 12 suburbs showing steady growth compared to just four suburbs three months ago. However, Lino Iacomella, executive director at Property Council WA, says continued growth depends on economic improvements and population growth.
Nevertheless, Mr Iacomella has confidence on the imminent future of Perth’s real estate market. Commenting on the increased sales activity in Perth’s northern suburbs, Mr Iacomella said: “It’s a typical forerunner to an improvement in the property market.”
“There’s a lot of expectation that within the next 12 months there’s likely to be a noticeable improvement.”
Who Should Investors Target?
According to buying patterns since the upturn, the northern suburbs are attracting families that have been renting properties until an ideal purchasing opportunity came along.
Lucy and Paul Barnes decided to buy a four bedroomed house in Kingsley after renting for four and a half years.
Mr Barnes said. “We’d been looking for the past few years on and off and decided now was a good time to buy.”
“It’s been handy in the current climate with lower interest rates and lower house prices.”
James Kennedy, a selling agent for Peard Real Estate Hillarys, reckons the Barnes family represents a typical buyer in Kingsley and other suburbs in the area.
Maximise Your Investment
Making a significant profit on a property investment means buying homes when prices are low and selling them at their highest, before the next downturn, making now an ideal time to snap houses up before the market tops out. However, to yield the biggest return on your investment, you need to stylise the property to entice your target buyer.
At Furniture Fitouts, our expert interior designers can prime your house for the market in as little as three days, and we’ll source, deliver, and install all your furnishings so that you can concentrate on marketing your house. Contact us today to learn more about our Perth home transformations.