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The month in review: Perth
By Herron Todd White
July, 2009
First home buyers have dominated the Perth real estate
market for the last 12 months and their focus has been on
entry level priced properties. The remainder of the market
has remained very quiet with limited trade up activity
into the second and third tiers, with prices adjusting
accordingly. The upside of this is that for those of you
with $500,000 ready to invest, there are now many areas
which exhibit reasonable growth potential at today’s
value levels.
The northern suburbs of Warwick, Duncraig and
Greenwood are worth a thought. Single residential
properties on family sized blocks can still be purchased
within our $500,000 budget, and offer good accessibility
to the city whilst being 5 minutes from the coast.
The southern suburbs of Leeming, Willetton and Riverton
offer similar access to the city and benefit from very good
standards of schooling and community facilities, whilst
offering a range of housing alternatives.
Closer to the city, strata units in the riverside sections
of Como and South Perth provide good opportunities,
backed up by a consistently strong rental demand.
Similarly, Fremantle continues to offer well located two
bedroom apartments as well as more modern three
bedroom villas within our budget. Both of these localities
have the added benefit of consistent strong long term
growth.
If you have always wanted to build in an idyllic riverside
location but never quite been able to get there, new
opportunities are arising for smaller subdivided
allotments within our budget in the sought after suburbs
of Attadale, Mount Pleasant and Bicton.
The question of ‘when to buy’ has been put to us on a daily
basis for many months. Over the last year, there has been
very little ‘trade-up’ activity into the second and third tiers,
however we are starting to see strong signs of an increase
in buyer demand. Well presented and correctly priced
properties are turning over much more rapidly than 6
months ago with agents reporting numerous offers to
purchase and strengthening home open attendances.
Whilst it is early days yet, there are hints of a slight
strengthening in the market place, with consumer
sentiment remaining somewhat optimistic. There are
several hurdles to jump yet, such as the reducing of
the First Home Owners Grant after September and the
seemingly premature rising of interest rates against the
flow of the economy. A more definitive assessment may
be possible in the coming months.
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