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Perth\u2019s property market has made a resounding comeback over the last two years and experts are predicting there\u2019s plenty of fuel in the tank to deliver further gains in 2022.<\/p>\n
Affordability, impressive returns and a robust economy are putting Perth firmly in investors\u2019 sights in 2022. <\/strong><\/p>\n Perth\u2019s property market has made a resounding comeback over the last two years. Data from independent research firm, CoreLogic, reveals values have climbed over 22% since November 2019. And experts are predicting there\u2019s plenty of fuel in the tank to deliver further gains in 2022.<\/p>\n Already, data from the Real Estate Institute of WA (REIWA) shows stock levels remain tight across the Perth market. Listings are half what they were three years ago, and Jennifer Wakeman, General Manager of Perth-based property advisory, Momentum Wealth, says, \u201cMore people arriving in WA when borders re-open will add to housing demand and keep listings below historical averages.”<\/p>\n REIWA forecasts show Perth values are expected to rise 10% in 2022 alone. Ms Wakeman explains, \u201cPerth values are still below the June 2014 peak, so there is plenty of upside for investors who get into the market early.\u201d<\/p>\n However, she believes the potential for capital growth isn\u2019t the only reason Perth is set to shine in 2022.<\/p>\n Perth\u2019s affordability trumps east coast markets<\/strong><\/p>\n As property values soar across Australia\u2019s east coast, Perth continues to be a haven of affordability.<\/p>\n \u201cPerth\u2019s median home value is currently $528,551 according to CoreLogic,\u201d says Ms Wakeman. \u201cThat\u2019s well below Sydney\u2019s median of $1,098,412, or $795,108 in Melbourne. This pricing difference is giving investors in Perth a lot more bang for their buck.<\/p>\n \u201cTo put this affordability into perspective, values in the Perth suburb of Daglish, a blue-chip location just 4 kilometres from the CBD, rose by 50.3% in 2021. Yet the median house value is just over $1.3 million. For that sort of money, investors in Sydney would be lucky to buy in a middle ring suburb.<\/p>\n \u201cPerth\u2019s affordability also makes the city a viable option for investors across a range of budgets and price points. Importantly, it provides opportunities for investors targeting capital growth to buy properties with a higher land component. That matters because we know established houses have historically delivered higher capital gains than units, which tend to be more yield-focused.\u201d<\/p>\n Perth rents soared in 2021; yields hit 4.4%<\/strong><\/p>\n It\u2019s not just the market\u2019s affordabilility that has proved a key selling point for investors.<\/p>\n Data from SQM Research shows rents for Perth houses climbed 15.2% in the year to early 2022 (apartments: 9.0%). This has pushed yields across the city to 4.4% according to CoreLogic, eclipsing yields in Sydney (2.4%), Melbourne (2.7%) and Brisbane (3.7%).<\/p>\n \u201cStrong yields in tandem with rising values are something of a holy grail for investors,\u201d said Ms Wakeman. \u201cPerth is ticking the boxes for both at present, and it\u2019s driving high levels of investor interest.\u201d<\/p>\n WA economy leads the nation<\/strong><\/p>\n East coast investors concerned about the sustainability of the WA economy can take heart that the state enjoys a positive outlook.<\/p>\n The WA economy grew by 4.3% in 2020-21 \u2013 the strongest across all Australian states for the second consecutive year.<\/p>\n The McGowan Government\u2019s mid-year review in December 2021 shows the economy is expected to grow by 3.5% in 2021-22, the fastest growth in eight years.<\/p>\n In addition, ABS figures show WA is starting the New Year with Australia\u2019s lowest unemployment rate (3.8%) \u2013 significantly below the national average of 4.6%.<\/p>\n In 2021, jobs growth attracted high levels of interstate migration to WA, with the state recording the second highest net interstate migration growth nationally for the year ending June 2021 (behind Queensland), further increasing demand for housing and rental properties.<\/p>\n \u201cPerth has a vacancy rate of just 0.6%,\u201d says Ms Wakeman. \u201cThis is a fraction of vacancy rates in Sydney and Melbourne, which are currently 2.6% and 3.2% respectively according to SQM research. As more people choose to resettle in WA, this will add to demand for rental housing.<\/p>\n \u201c2022 is expected to be a bumper year for the Perth market, and today\u2019s investors are well-placed to benefit from the city\u2019s affordability while interest rates remain at historical lows.<\/p>\n \u201cI would encourage east coast buyer to look west. Professional buyers advocates and skilled property managers can make the experience of investing in Perth both seamless and financially rewarding.\u201d<\/p>\n This article is a sponsored content collaboration with Momentum Wealth<\/a>, a multi-award-winning property investment consultancy based in Western Australia. <\/em><\/p>\n To speak to their team in more detail about the current opportunities in the Perth market, <\/em>visit their website<\/em><\/a><\/span> to organise a free consultation with their property experts.<\/em><\/p>\n<\/p><\/div>\n