2020 has been a tumultuous year for people and industries across the world – and Perth’s property market is no exception. Though the impacts of COVID-19 had a significant effect on the confidence of Perth property buyers, our corner of the country was lucky to flatten the curve within a few months, and as such, the Perth property market remained relatively resilient.
With 2021 just around the corner, it’s a good time for those on the hunt for property in Perth to reflect on the year that was, and understand the upcoming Perth property predictions that could affect their decisions to enter or remain within the Perth property market. Read on for our insights, as well as a few handy tips to ensure you get the most value for your dollar from Perth’s property market in 2021.
Predictions
Fortunately, the city of Perth wasn’t as harshly affected by the effects of COVID-19 than other cities on the east coast. Perth property values fell slightly in May, June and July, but housing activity has since demonstrated a sharp rise.
With this rise comes a slight increase in property price. Where other Australian capital cities are set to see property prices rise up to 20%, Perth property value is expected to increase by an average of 18%. The median Perth house price, conversely, has remained stable at $475,000.
Another prediction related to the impact of COVID-19 involves locals and other Australians hoping to settle down and seriously consider their property needs – especially as overseas travel will be off the table for the near future. There have already been reports of interest from people interstate to relocate to Perth, potentially due to the city’s successful handling and short lockdown period during the height of COVID-19 in Australia. Virtual walk-throughs of properties are becoming more and more popular, as potential property buyers are eager to virtually explore a range of Perth properties.
Supply and Demand
While property sales activity was quiet during the initial COVID-19 lockdown months in Perth, levels have picked up to where they sat before the pandemic hit Australia in March 2020. The demand for Perth properties is on the rise – and luckily for those on the house hunt, there are plenty of listings to view and choose from.
The number of listings for sale have seen a significant increase, which is a great sign for those hunting for the perfect Perth property. It’s also a good sign for people who are considered putting their properties on the market, as it reflects Perth’s current favourable market conditions, and is demonstrative of the collective confidence of those within Perth’s property market towards the end of 2020, and heading into 2021.
Many are also reporting this as a great time to get into the property investment market, as borrowing conditions are extremely favourable due to the State Government’s COVID-19 grants and allowances. Read on for more information about the “Building Bonus” scheme.
Top Tips
As part of the “Building Bonus” scheme announced in June 2020, the Western Australian State Government is set to release a series of $20,000 grants to fund property investment within WA – but it’s important to exercise caution in signing up for the grant before it expires at the end of 2020. Here are a few things to keep in mind before applying for this special property investment grant.
1. Make sure you’re in it for the long haul
Ensuring you have a 10-year perspective when it comes to property investment is a good place to start. Before selecting your property, it’s wise to do a comprehensive search of the overall capital growth rates (for the past 10 years) for the area you’re hoping to purchase in to ensure you’re aware of the potential increases or losses your property could return within 10 years of your ownership of it.
2. Avoid buying property in mining towns
Western Australia is filled to the brim with mining towns – and though they are high-performing areas for property sales, they are also high-risk options for investors due to the unreliability of the mining sectors’ booms and busts. The value of these properties can surge during periods of boom, but are extremely quick to collapse in case the mining sector sees a downturn.
3. Invest in a professional property manager
If you’re a first-time property investor, it’s an almost essential step to employ the services of a professional property manager. If you decide to manage the property yourself, you may make common mistakes including skipping necessary background checks and choosing a poor-quality tenant who could potentially damage the property or fall behind in rent payments. First-time property investors can’t afford to make a financial misstep such as this one, so employing a professional is a sure-fire way to enjoy a smooth and financially beneficial property investment process.
Popular Suburbs For The Perth Property Market In 2021
In Perth, outer suburbs such as Byford, Banksia Grove and Port Kennedy continue to be popular amongst property buyers. The western suburb of Jolimont is also growing in popularity, and is expected to see a rise in property value once the One Mabel Park development is complete. This development will be comprised of 46 boutique apartments over six levels, and will oversee the picturesque Henderson Park Reserve, Jolimont Lake and the towering Perth CBD skyline.
Due to the rise of remote working following COVID-19 social distancing restrictions, towns within regional Western Australia, including Wilyabrup, Dunsborough and Margaret River are also experiencing an influx of potential property investors interested in purchasing property further from Perth.
Gearing up to buy your perfect Perth property in 2021? When it comes to property settlement, trust the local experts at C&R Settlements. With over 60 years of combined experience, C&R is comprised of a team of passionate Perth settlement agents specialising in commercial and residential property. Call our team today on (08) 6424 9788 or send us an email at admin@crsetts.com.au