Is Perth Property Moving Up or Down? Think Hard Again.

Some investors whom I talked to recently asked me is Perth property having an upward trend or downward trend. To share my opinion with them, I managed to search an article from Herron Todd White (one of the largest independent property valuation and advisory groups in Australia), and the picture of the article in this email was from this website link: https://static.htw.com.au/HTW-month-in-review-February-2021.pdf

Below are some of the key pointers from the article on Western Australian property market for your 2-3 mins reading:

 

(1) Property sales activity has increased 41.3% year-on-year (i.e. Dec’2019 to Dec’2020)

 

(2) Employees in the mining sector required to reside in Perth state to avoid regular quarantine periods

 

(3) Record low interest rates of 0.1% in Australia

 

(4) Record low vacancy rate of 0.8%

 

(5) Median rents up by 8.5% from $350 to $380 per week, all whist COVID-19 protocols result in rents unable to be raised for sitting residential tenants

 

(6) 1000 international arrivals a week expected back into Perth with domestic borders opening up

 

(7) State government avoiding a deficit and forecasting a $1.2 billion surplus in 2020

 

(8) Mining resources such as iron ore price up from USD66.20 per tonne to USD96.60

 

(9) Supply of rental listings at the end of Dec’20 were down 31% from the same time a year ago (i.e. 13,300 properties to 9,167)

 

(10) Given these factors, Herron Todd White team could predict that $500,000 to $1.5 million price range in established suburbs will be a key market segment to watch

Is Perth property going for an upswing or you reckon it is not?

Please feel free to share your thoughts and views in my blog or Facebook page.

I look forward to hearing your valuable insights.

Stay safe and keep healthy.