It’s no secret that the Perth property market is currently skewed in favour of buyers. Ample choice, low interest rates and a range of developer incentives are just some of the factors that have conspired to create an unprecedented level of opportunity and affordability.
More and more investors from around WA, interstate and overseas are looking to Perth as the next boom market. So for those keen to take advantage of the current conditions, what are some of the things to consider when buying an apartment in Perth?
Let’s start with the question of affordability. Unlike markets in the eastern states, Perth is close to the bottom of the property cycle meaning prices are extremely affordable and capital growth prospects are strong. Buyers should seek an investment that represents the best value proposition. Always do your research to find out what type of housing stock is on offer in a particular suburb and what the median house price is. From there you can begin to gauge which potential investments offer the best value.
After price, location is the second biggest motivating factor for apartment buyers. When considering where to buy, you need to think in terms of your lifestyle and the amenities you’re most attracted to. For some people it’s the beach, others prefer living closer to the city, while some are drawn to more bohemian areas. It’s about what suits you best. But whichever area you choose, make sure it is close to social amenities like cafes and restaurants, and is well connected by public transport.
Keep in mind that apartments are generally much more affordable than established homes, which means that buyers have the opportunity to access suburbs that may otherwise by out of their reach. In fact, in some areas there is a difference of up to 350% between average house and unit prices. So be careful not to use median house prices as the sole measure of affordability because apartments can offer a quality and affordable avenue into your dream suburb.
Understanding when to buy is nearly as important as recognising what to buy. There is a very clear window of opportunity for Perth apartment buyers. That window exists because supply is high, interest rates are low and prices are affordable. However, like most things, property markets are cyclical and an upswing is coming. When that balance returns, buyers who entered the market at the opportune moment stand to gain a healthy return on their investment.
Like any investment, it’s important to consider the long-term growth prospects before buying. Luckily for Perth apartment investors, all the signs point to a very bright future. With the population expected to grow by 50% by 2050, future Perth is going to need much more housing stock. With close to half of future dwellings expected to be delivered through infill developments, there is a very stable outlook for a city that will be growing ‘up’.
The home you buy today should include features that ensure it is future-proofed for tomorrow. Look for ecologically sustainable apartments that incorporate renewable technologies like solar power generation. These features not only reduce living cost for occupants but will also keep your investment on the cutting edge of technology now and into the future.
In summary, here’s some things to consider if you’re in the market for an apartment in Perth:
- Affordability – it’s a great time to be a buyer, but the market will adjust soon;
- Location – choose an area that suits your lifestyle and is close to public transport;
- Price – don’t use median house prices as the sole measure of affordability;
- Timing – know when to buy and seize the moment;
- Outlook – know where the market is heading and recognise the long-term growth prospects
- Sustainability – choose apartments that are future-proofed with sustainable technologies.
If you want to know more about the apartment market in Perth, or to learn how affordable apartment living can be, Psaros offers free investment seminars that will help you make an informed decision. To register for the next 60-minute seminar on November 18 visit http://psaros.com.au/register
