Recent updates indicate the Perth property market is beginning to stabilise and we are confident that we’ve reached the bottom of the cycle. Sales activity has increased significantly in the first quarter and the next 2 years will be very promising, showing a return to WA’s strong historical growth figures. When it turns it will turn fast and 2016 is really the year for property investors to buy a bargain in Perth.
Interest rates are still at record lows and a volatile share market is sending money towards bricks-and-mortar investments. Sydney and Melbourne buyers are now looking again to invest in Perth – these are all indications of WA’s steadying market conditions.
Our own leasing team has seen strong enquiry and great results from their apartment leasing campaigns. While REIWA reports 6% vacancy rates in Perth, Blackburne’s rate across our metropolitan portfolio is only 4.4% and even more importantly for Blackburne’s own developments the vacancy is just 3.2% reinforcing the superior quality of Blackburne developments and services compared to the greater market.
Looking toward the East coast now, the Melbourne & Sydney markets while maintaining some latent herd momentum have begun clear signs of the expected slow down, and across some property types and locations there is clear evidence of valuation and settlement issues already occurring.
The Brisbane market remains affordable, showing strong activity with little else to be confident about on the Eastern seaboard. There is concern from the experts though about rising vacancy rates and decreasing yields particular in the Brisbane City region.