Why property in Perth will be worth 22 per cent more in three years

If you’re looking to buy a
property in Australia then Perth should be a location you consider.  That’s the view of a leading property
analyst who believes that house prices in the Western Australian city will rise
by 22 per cent in the next three years.

Despite a small fall in Perth
house prices this year, BIS Shrapnel believe that the market is set to
turn.  So, if you’re looking to buy
property in Australia, now could be the perfect time, as we see here.

Now is the time to buy property in Perth

The company’s recent ‘Residential
Property Prospects, 2012 to 2015’ report states that while Perth’s  median house price is estimated to fall
one per cent this financial year, property prices are set to recover between
2012 and 2015.  The Sydney Morning Herald reports that the
median price of a house in Perth this June is $475,000 (£305,400) but is
expected to be $580,000 (£372,950) by 2015.

The study’s author, Angie
Zigomanis, believes there are a number of factors driving the turn-around.  He said: “Population growth is already
accelerating as Perth also benefits from rising overseas and interstate
migration and, combined with recent weak new dwelling construction, has
resulted in vacancy rates tightening from 3.5 per cent at June 2011, to 1.9 per
cent in March 2012.

“With unemployment in the
state already leading the nation at 3.8 per cent in March 2012 and economic and
income growth to continue to strengthen, the first stages of a turnaround should
appear in 2012/13 before stronger price growth emerges in 2013/14 and 2014/15
as economic growth approaches a peak.”

Now is the perfect time for
anyone looking to buy property in Perth. 
Over the next few months buyers will be in an excellent position, but as
house prices start to rise it will become tougher to negotiate a great deal.

 

Author : Nick
Marr