The Perth property market is set to become an investor’s dream in 2020, and here’s why…
Since the peak in 2014, Perth property prices have fallen, however 2019 saw some stabilisation in the market, due to an increase in activity in the mining sector, the 75% Stamp Duty Rebate being introduced, and low interest rates.
The first two months of 2020 have shown an acceleration in recovery which may signal the market upswing which has been long anticipated. Predictions so far indicate that the March 2020 QTR results will further bolster this recovery and fuel renewed market confidence.
Perth property values on the rise
Sales activity in February 2020 was up 5% on the improvement already recorded in January. “With sales activity on the rise, listings for sale were stable in February and it took on average only 47 days to sell, which shows that current stock is being absorbed at a faster rate” (REIWA President Damian Collins).
“With the RBA announcing recently that interest rates will be again lowered, taking the cash rate to 0.50 percent, and many banks announcing they will pass this onto lenders, this should help continue to improve the sales market and WA’s economy.”
“If things continue on this upwards trajectory, median prices should continue to increase – which hasn’t happened since June 2018.”
Market factors point to a significant rise in rental value
Perth’s rental market is tightening, a sign of a rebounding property market (Domain).
In February 2020, REIWA reported that the median rent in Perth rose for the first time in over three years (from $350 per week to $360).
President Damian Collins said, “this increase can be attributed to Perth’s vacancy rate dropping to 2.2 per cent, which is the lowest it has been since March 2013, coupled with listings for rent on reiwa.com being down compared to January.”
“After a long stretch of declines in the WA property market, it is great news that we are starting to see gradual improvements,” Mr Collins stated.
Market factors are improving and sentiment is high, but will you be ready when the stars align?
As the Perth property market moves into its upward swing in 2020, now is the time to act to ensure you will be in the best place to capitalise on your investment.
One of the key factors that determine rental return and vacancy rates is your choice of property manager. You should be confident that your property management team has proactively set out a plan to maximise your investment at this time. If they do not already have a plan in place, you might want to consider changing property managers now to ensure you are ready for the upturn.
If you’re looking for an experienced Perth property manager or perhaps considering changing property managers to maximise your rental return, contact us today and our friendly team will be in contact with you shortly.