IN Perth Property Market

 
Destination unknown – or is it?

There’s a lot of talk at the moment about the direction of Perth’s property prices. Forget the noise (and there’s a lot of it) and look at the signs. They’re there for all to see and they’re pretty clear.

The ingredients are ripening for a positive shift.

Figures released recently show over the past five years Perth property prices have stabilised, rising by less than three or four percent in most Perth suburbs. In fact, some areas have experienced negative median price corrections. Another important indicator is a sharp drop in the amount of for sale stock available on the market.

This indicates relative affordability has improved in the metropolitan area and Perth is on the threshold of a resurgence in buyer activity once a buying trigger is introduced.

That trigger could be a number of things – I anticipate it will be further cuts to the interest rate.

Economists are predicting it could fall by up to 2.5% by next March, with the Reserve Bank warning at its October board meeting that the outlook for growth in Australia has weakened as the mining sector had slowed down sharply. A great example of that locally is Fortescue Metals Group with FMG announcing it was pulling back on expansion plans and cutting hundreds of jobs. Balanced however by the recent reports that the WA economy is the strongest wealth generator State in Australia.

So what does all of this mean for you?

Three words: surf the curve.

When the property market moves, it can happen very quickly so being ahead of the curve and riding with it can be a potential game changer for you.

As I’ve said before, money will always follow value. Regardless of your budget, you must always look for an advantage – in other words, an area offering positive amenities such as transport, good schools and lifestyle. These features bring security and growth.

If you’re looking to benefit financially from anticipated improvements in property values, I would avoid any area which tends to be a bit bland in character or appeal as they will probably always be sluggish in the market. And, be wary of anything that has experienced rapid price gains in recent times. When investment buying stay close to the median price point in the market.

The signs are definitely indicating a swell in activity  ahead of the next property price wave so to avoid being left behind in the wash up, astute property investors will be preparing now to dive back into the Perth market.