Perth property investors who are also interested in building or property development should also stand to benefit from the demand for more housing. Whether you are able to sub-divide current property or build in single or multiple lots, market indicators show that, particularly if you are building the right kind of property, your new dwellings should rent or sell relatively quickly. Additionally, across Perth property prices are up by an average of 6% so prospects are looking better for good sale prices.
The Perth property market has also experienced a doubling in purchases from foreign investors over the last few years. According to data from real estate agents, one in ten off-plan apartments are being bought by foreign investors. Many foreign investors are happy to pay higher prices for real estate as a stable asset in a stable country. Analysts argue as to whether or not this additional investment activity has artificially raised the prices of off-plan apartments so investors should be sure to do their numbers on these prior to purchase. Other analysts argue that with the shortage of property available, any investors should be able to make money on these apartments.
Overall the investment property Perth scene looks to be ripe for a boost in investor activity. Demand for property, particularly from foreign and domestic migrants is continuing to outstrip the supply available. Investors who purchase current property will find that it is unlikely to be vacant for any long periods of time and those who can build or develop will find their properties in demand to help bridge the gap.