![\"Perth](\"https:\/\/fmsto.blob.core.windows.net\/cms\/images\/055\/0004_637734881494460810.jpg\")
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Property investors are considering diversifying into Perth<\/a>\u2019s property market to take advantage of the city\u2019s affordability and robust rental yields.<\/p>\n According to Momentum Wealth\u2019s latest report, there was a 108% increase in interstate enquiries for Perth properties during the first quarter of FY 2022 compared to the previous year.<\/p>\n Momentum Wealth general manager Jennifer Wakeman said many of these property investors are from the Australia\u2019s East Coast who are attracted to Perth\u2019s strong capital growth prospects.<\/p>\n \u201cThe uptick in investor enquiry is being driven by the greater affordability of the Perth market amid rising cost concerns in the Sydney and Melbourne markets in particular,\u201d she said.<\/p>\n The Real Estate Institute of Australia (REIA)\u2019s Housing Affordability Report for the June 2021 quarter tagged Western Australia as the most affordable state to purchase property.<\/p>\n The affordability report showed that households only need 26.5% of their income to meet loan repayments, significantly lower than the 43.9% in Sydney and 35.6% in Victoria.<\/p>\n \u201cInvestors looking towards Perth are not only benefiting from more affordable entry into the market, they are also getting more for their budget in terms of land value, property size and proximity to the CBD \u2013 all key drivers of capital and rental growth.\u201d<\/p>\n Compared to bigger East Coast property markets, Perth\u2019s gross yield is more solid at 4.4%.<\/p>\n Perth\u2019s rental yield is among the highest across all states, trumping Sydney\u2019s 2.4% and Melbourne\u2019s 2.7%.<\/p>\n \u201cThere is no doubt the Perth property market is in a sweet spot for investors right now given the opportunity to leverage both yield and growth as the market moves further into its upswing,\u201d Ms Wakeman said.<\/p>\n However, it appears the current growth phase in Perth has already shown a little sign of easing.<\/p>\n Still, Ms Wakeman believes that certain factors, including Perth\u2019s widespread skills shortage and ongoing low levels of housing supply, are set to favour continued market uptrend.<\/p>\n Figures from REIWA showed that listings for sale hit 8,513 weekly average in October, almost half of the peak at 16.969 achieved in November 2015.<\/p>\n The 52,100 job vacancies across the state are likely to put further pressure on shrinking housing supply.<\/p>\n \u201cLimits on cross-border movement mean it\u2019s currently challenging to recruit interstate, but as borders open up there will be more interstate migration from skilled tradespeople and professional workers to fill roles, which will place further upwards pressure on housing demand and prices,\u201d Ms Wakeman said.<\/p>\n \u201cMany East Coast investors are recognising this, and are eager to diversify their property portfolios, and get into the Perth market while values are affordable to leverage this capital growth.\u201d<\/p>\n Latest figures from the Real Estate Institute of Western Australia showed 2,351 properties for rent in Perth over the week ending 19 November.<\/p>\n This represents a 3.7% growth from the preceding week and a 10% uplift from a month ago.<\/p>\n Leasing activity also increased over the same period, up by 2.2% or around 670 properties being rented.<\/p>\n \u2014<\/p>\n Photo by George Bakos on Unsplash.<\/em><\/p>\n<\/p><\/div>\n
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Rental stock increasing<\/h2>\n
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