In recent years many overseas property investors have flocked to invest in Australia and seen property values rise annually by double figure percentages.
State capitals in particular have been popular places to invest, with the best known cities of Sydney and Melbourne still showing double digit percentage growth over the past year.
However, new property taxes introduced for foreign investors in eastern states of Australia last year have made it difficult to invest in the eastern states of Queensland, New South Wales and Victoria where the popular state capitals of Brisbane, Sydney and Melbourne are situated.
Victoria in particular introduced a punitive 7 per cent stamp duty property tax on foreign investors, making purchase costs prohibitive.
Investment in Adelaide, South Australia has increased since this time, as the treasurer of the state announced in 2016 that they would not be following their eastern neighbours lead with additional taxes.
During the Australian property boom of the last few years though, it seems one state was not invited to the party.
The largest state of Western Australia has actually seen a property downturn during the last three years, with property values in the state capital of Perth falling by 4.7 per cent over the last 12 months, partly due to the drop in Australia’s mining boom.
However, this may be all about to change.
With Perth actively diversifying into other sectors such as tourism to counter the previous reliance on mining, demand is beginning to increase and property prices have started to move up again in 2017.
The rise of tourism, hospitality and technology industries has led to Perth attracting a young and transient population with an average age of 20-40 and the majority living in single houslholds.
Because of this over 60 per cent of all properties are rented, making the Western Australia capital an ideal place to invest in rented property.
East Perth is particularly popular with young professionals looking to work in the city centre, with investment in new infrastructure including improved major transport links currently being completed.
Property prices have yet to reach anywhere like the eastern city hot-spots of Sydney and Melbourne, but are expected to start rising rapidly as global property investors continue their love affair with Australia and seek new areas to invest where they are not hit by the punitive tax measures imposed by the eastern states.
With a young and vibrant population and infrastructure investment already being made; Perth, and East Perth in particular, may be the new property hot-spot in Australia to invest over the forthcoming years.
Overseas property investors looking for value for money and a consistent supply of professional tenants, take note.