Perth primed for smart investors: Damian Collins

Perth primed for smart investors: Damian Collins
Perth primed for smart investors: Damian Collins

GUEST OBSERVER

A number of recently released statistics suggest that the Perth residential property market is primed for investment in 2017.

Key indicators offer reason to believe that Perth is moving through the bottom of its current residential property cycle, and investors may be able to capture the full benefits of the next upswing by acting in the coming months.

Some positive signs in the market are contributing to an overall shift in sentiment amongst buyers, with many feeling optimistic about 2017.

Smart investors know that now is a great time to buy in Perth, but as we’ve always said, selecting the right property type in the right area is also very important, and at the moment there are some very attractive opportunities out there for savvy investors.

Stronger numbers

The latest data released by the Real Estate Institute of Western Australia (REIWA) shows that Perth’s preliminary median house price for the December 2016 quarter did not change at $520,000, which is a positive sign as historically once all sales have settled, this preliminary median generally increases, so Perth could in fact record an increase in price over the quarter.

Sales activity is increasing with the preliminary dwelling sales for the December quarter 2016 five per cent higher than the same time in 2015. For the week ending 31st of January 2017, property listings were down about 2 percent year on year, indicating that some of the excess supply in the market is starting to be absorbed.

Furthermore, CoreLogic’s recently released RP Data report revealed that Perth dwelling prices improved by .2 percent in January contributing to a 2.1 percent rise over the past three months, adding to conjecture about the beginning of a recovery after a long period of negative growth.

Great time to buy right

Buying strategy is just as important as timing in order to maximise the benefits of any approaching upswing. Investors who examine potential demographic, social, infrastructure and planning changes will have the best chance in purchasing a property that will outperform the market.

For example, in 2007, our research team identified the City of Belmont as an investment grade suburb with strong short and long term growth drivers exposing many of our clients to the rapid price growth that occurred in this area.

The report explores some of the research and resulting strategies the company employed to capitalise on investments in Belmont.

With stock of listings still comparatively high, interest rates at record lows and affordability amongst the best in the nation, the current market presents excellent buying conditions in 2017:

Investors who can identify a good long term growth property and negotiate a favourable deal should purchase now to realise significant price growth in the future.

Damian Collins is the founder and managing director of Momentum Wealth and can be contacted here.

Tags: 
Western Australia Residential Property

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