The Perth property market underwent significant growth last year, with home values increasing by 13.1% according to the state’s Real Estate Institute. Despite a year of strong sales, the Perth market remains the most affordable in the country with homes still well undervalued. However, experts predict this won’t be sustained and foresee housing values to continue gaining traction, rebalancing the Perth market with national figures.
In this article, we explore why Perth property prices are poised to inflate in 2022, and how you can secure an affordable riverside apartment primed for maximum returns at The Groves in Attadale.
History to repeat as Perth prices intensify
Perth properties are currently significantly undervalued in comparison to their eastern states’ counterparts, with the latest data from REIWA placing the median value at just $520,000. This figure represents an enormous 45.9% disparity compared to the national average, and just half of Sydney’s median value of almost $1.5 million. This won’t be the first time our state will undergo a swift readjustment of underwhelming prices, with similar conditions occurring in the early 2000’s. The median price of a home in 2002 was $190,000, before prices shot up to reach $465,000 in 2007. The Perth property market cycle is now back in this familiar position, preparing to catapult property prices to new heights.
Like any upturn in the property cycle, future housing value growth will be driven by increasingly high demand. As the peak in Perth property prices remains firmly on the horizon, homebuyers are seeking to get ahead of the market and purchase property for affordable prices now to achieve maximum returns later.
WA remains strong, driving competitive property market
Despite a tumultuous year, the Western Australian domestic economy grew by 4.3% in the past financial year, remaining the most resilient of any state. The state’s resource boom has continued to carry our economy, providing over $210 billion in sales and employing more people than ever. The state’s strong economical position, combined with pandemic-driven changes to personal savings trends, has placed many West Australians in an excellent position to purchase a home.
Aligning with strengthened personal finances, the cash rate has remained at an all-time low of 0.1%, encouraging buyers to take on a home loan while prices are low. The market has been immensely tight as a result, with listings falling by 52% in the year to November. Houses on the market began selling rapidly, with the median sale time reducing to just 18 days in mid-2021. In addition to the critically low supply of existing houses on the market, building material and labour shortages mean little relief can come in the form of new builds. 93% of Perth-based builders have reported their activity has been hindered by product delays, while tradespeople account for over 35% of the national labour shortage.
As a consequence of the tight purchase market, rents in Perth were pushed up by 10.8% over 12 months. Residential vacancy rates also plummeted to a historical low of 0.8%, marking the lowest it has been in 40 years. Perth investors are also experiencing inverse yields for the first time in half a century, reflecting a true landlord’s market. With state borders likely to reopen soon, bringing an influx of interstate and overseas buyers, the Perth rental and purchase markets will likely see fierce competition and prices rises.
Invest in a prime Attadale location
With housing values primed to intensify in the near future, now is an opportune time for investors to secure their slice of Perth property while prices remain well below market value. Purchasing a premium riverside apartment at The Groves in Attadale is more affordable than ever, with investors offered a rare opportunity to lock in a low price before housing values rise. Set in the affluent suburb of Attadale, nestled on the foreshore of the tranquil Swan River, The Groves is the latest project by trusted real estate developer SKS Group. The centralised Attadale location presents a prime investment opportunity within a well-established area that will favour maximised returns. Boasting impressive weekly rents between $450 and $500 per week for one and two-bedroom apartments, Attadale is a highly coveted rental area ideal for bolstering an investment portfolio.
Maximise Your Returns with an Affordable Investment at The Groves
Offering a selection of one, two or three-bedroom apartments in a premium boutique development, The Groves is a superior long-term investment option. The residences represent the pinnacle of luxury apartment living, designed by celebrated architectural firm Cottee Parker and featuring range of first-rate specifications. The Groves in Attadale has already been a hit among investors, citing great value prices, tax deduction benefits, and the potential for massive capital growth. With over 65% of apartments already sold and the Perth market value rising by the day, investors will have to move quickly to secure a spot ahead of the anticipated strong lift of property and rental prices.
If you’re interested in purchasing a premium riverside apartment before Perth prices rise to reflect their true high value, contact our friendly team to lock in a low price.