Investors priced out of Sydney and Melbourne are expected to start looking to Perth as advisers dub WA one of the top buyers’ markets in the country.
While interstate migration to WA has slowed dramatically, Industry figures say property investment has remained strong and is expected to grow in coming months.
Perth has more than 19,000 properties listed on the market, forcing a price drop of $20,000 in the June 2015 quarter to a median of $525,000, according to CoreLogic RP Data figures.
Across the country, Sydney’s median price has risen by more than $100,000 to $1 million in the past 12 months, and Melbourne is not far behind with a rise of more than $60,000 to $671,000.
Independent property commentator and Hegney Property Group director Gavin Hegney agreed that while the Sydney market was “running on emotion”, buyers were safer in WA where they were more likely to pick up a bargain.
“There tends to be a cycle of emotions that follow with the property market,” Mr Hegney said.
“Sydney has been at the euphoria stage, but this is actually the stage of maximum financial risk and will turn into the anxiety stage.
“I think in Perth we’re in the fear stage and this will continue until the market starts to upturn and we reach the hopeful stage. But, as an investor, there is less reason to be fearful here than there is in Sydney.”
Extract from article published in ‘The Sunday Times – Real Estate’ dated 4 October 2015.