Perth Property on The Rise
WHILE property prices ease across the country, economists are predicting Perth will buck the trend and return to a booming real estate market by mid-year.
For those eager to get into the property market, it seems that after years of seemingly unstoppable housing growth 2011 could be the year to secure a slice of the Great Australian Dream.
Perth could be the exception, with economists predicting prices will surge to 2006-2007 levels.
Last year the national housing market was still one of the strongest in the world with growth tracking at five per cent annually.
Most economists predict property prices will rise nationally for the year by a modest three per cent, with Sydney and Perth expected to record the strongest performances.
But real estate gems can still be found in any economic climate - even when there is a period of low growth forecast.
Potential buyers should seek out areas where the market has performed well in the medium to long term (three to five years), and for properties with high gross rental yields, short sale times and minimal vendor discounting.
RP DATA research shows solid growth in suburbs 10km outside metropolitan areas, where real estate is more affordable. Middle-ring suburbs along major transport spines top its list of strong performers, indicating that buyers are rating both the price and commuting time high in their priorities.
Australia Property Monitors senior economist Dr Andrew Wilson forecasts activity will be restrained in most markets early on but demand and price growth should resume by mid-year.
He says mining activity, strong employment, rising wages and a serious housing shortage that will get worse in 2011 will offset rising interest rates and declining affordability.
He also nominates Perth and Sydney as his capital city hotspots and the Illawarra coastal precinct in New South Wales as his regional pick.
“Perth is a definite hot spot - there are always mining projects in the pipeline and the city has been flat for a couple of years. It tends to be a volatile market so the fact that it has flattened indicates it’s ready to gather the momentum it had in 2006 and 2007.
RP Data, Australian Property Monitors, PerthNow.com.au