Perth in Western Australia has been predicted as a potential property hotspot for overseas property investors in 2018.
The state capital is the fourth-most populous city in Australia, with a population of over 2 million living in Greater Perth, and massive State Government investment in Metronet, Optus Stadium, Yagan Square and Elizabeth Quay is forecast to begin paying off this year.
Whilst the heady capital gains seen during the mining boom are not expected to be repeated, property experts feel that there is plenty of value on offer.
42 suburbs in Perth recorded sales growth in the last quarter of 2017, a stark contrast to zero in the final three months of 2016, and this growth is expected to continue.
Terry Ryder, founder of real estate website Hotspotting, commented: ‘We provide reports to clients right around Australia and what we’re saying is that Perth is the land of opportunity for savvy investors.’
He continued: ‘Jobs are being created and resources projects are being started, which is very positive for the WA economy and the property market.’
Other experts agree, with Property Council of Australia WA executive director Lino Iacomella stating that communities along the Midland rail line, including Maylands, Meltham and Bayswater, were already seeing growing demand for home and development sites.
Mr Iacomella said this demand has followed the public and private infrastructure work associated with Metronet and the Forrestfield-Airport rail link, and added that ‘early investors will benefit from long-term commitments for new stations in Redcliffe/Belmont and Forrestfield’.
Another destination in Perth to watch is coastal resort Scarborough, which has been said to have the ‘potential to be the Bondi of Perth’.
There has been a lot of redevelopment, particularly around the foreshore, including a beachside pool. The benefits of the new public infrastructure development is expected to lead to a boost to surrounding property prices.
Momentum Wealth managing director Damian Collins advises investors to buy in areas with low vacancy rates and decent rental returns, and view capital gains as a more long-term consideration.
He said: ‘You can get a home in Willagee or Bibra Lake in the mid $500,000 range and the vacancy rate in both is less than 3 per cent, compared to around 6.3 per cent in Perth overall.’
Median property price growth in Perth is expected to be between 2 and 4 per cent in 2018, but aspirational and inner-city suburbs are expected to perform much better than areas on the fringes of the state capital.
Overseas property investors considering Perth should research their preferred area carefully.