Perth apartments likely to be the standout performers for 2013: WBP

Perth apartments likely to be the standout performers for 2013: WBP
Perth apartments likely to be the standout performers for 2013: WBP

Investors who purchase Perth apartments or Perth properties priced under $500,000 have the best prospects for capital growth over 2013, says WBP Property Group CEO Greville Pabst.

Pabst expects these types of Perth properties to generate capital growth of between 5% and 10% over 2013.

However, the outlook is far from uniform across Perth with Pabst forecasting that Perth holiday homes could lose up to 5% of their value over 2013 with declines of up to 3% for residential development sites.

The outlook for Perth houses within 20 kilometres of the city is for capital growth of around 7% at best, but there could be no price appreciation for Perth houses over 2013.

Little if any gains are tipped for the Perth prestige market ($2 million plus).

The outlook in Sydney is strongest for established housing within 10 kilometres of the CBD (up to 5% growth) with small gains for established units (up to 2% growth), but the rest of the market is expected to struggle with Sydney holiday homes set to fall by as much as 10% in value.

The forecasts cover the key capital city markets of Sydney, Melbourne, Perth and Brisbane and recognise that "different markets [within a larger market] perform differently”.

The outlook is fairly consistent for Brisbane, with modest growth tipped across both houses, units, the holiday market, mortgage belt and even for the long-struggling residential development site sector.

House prices within 20 kilometres of the Brisbane CBD are forecast to grow by 5% or more.

In Melbourne the prospects are strongest for established house and units but weakest for holiday homes and development sites where values could fall by double digits.

Pabst says it’s important for buyers to recognise that “no two properties perform the same because no two properties are exactly the same.

“Size, suburb, street and lot location, orientation, condition and broader economic conditions underpin property performance on an individual level, and exercise significant influence on capital growth,” he says.




Note: The forecasts do not include analysis of off-the-plan properties and only include legitimate resales

Photo courtesy of Flickr.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer


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