Australians’ growing preference for apartment living shows no sign of slowing, with more of us opting to forego the big backyard and traditional Hills Hoist for a more compact and convenient inner city lifestyle.
Appealing to young, trendy Gen Y’s in particular, the lure of being close to the action and employment has seen a push toward apartments located in and around our capital city CBD’s in recent years.
But as prices creep up in the likes of Sydney, Melbourne, Brisbane and even Darwin, how easy will it be for those looking to break into the apartment market over the next few years? Opportunities out west
Well, if you’re prepared to head west, chances are you’ll find that trendy, café culture you’re looking for in one of Perth’s city-fringe hotspots and a reasonably priced one bedroom apartment to call home.
Findings from a Smart Property Investment report, published in WA Today, reveal that Perth suburbs Mt Lawley, Leederville, North Perth and Highgate have topped the list of the cheapest areas in which to find one-bedroom apartments.
The report titled “Inner City Steals” challenges the notion that buyers have been priced out of inner city markets, demonstrating that apartments priced at or under $300,000 are still available in 20 suburbs within a 5 kilometre radius of Australia’s CBD’s.
Following the four top Perth suburbs were Sydney’s Ultimo and Adelaide’s Mile End and Goodwood, with Perth deemed “top metro investment choice for 2012”.
Is the Perth property market finally turning
Perth’s property market prospects are starting to look up after a very shaky end to 2011.
Senior Economist with Australian Property Monitors Dr Andrew Wilson, was on the panel responsible for ranking the top 20 suburbs in the report and claims WA is finally breaking out of its recent trough.
Predicting an optimistic 5 to 10 per cent growth in Perth’s median house price by the end of the year, Wilson said, “In the first two months of this year, dwelling loan approvals were 32 per cent higher in WA than in the first two months of last year. That is an enormous lift.”
SQM Research expert Louis Christopher agrees that things are looking up for Perth real estate.
“In some of these suburbs wages have quadrupled in the last 20 years – tripled in the last 15 – and we know that the commodities boom is causing that,” he said.
“I’m increasingly a believer that Perth has seen its downturn now and we are entering a bit of an upturn.”
Giving further good news to investors is Debra Goostrey, the Urban Development Institute of Australia’s WA branch chief executive, who reports sales transaction numbers are on the rise and Perth’s 1.9 per cent vacancy rate is putting upward pressure on rents and driving property purchasing decisions.
“The market remains patchy with anecdotal reports from developers ranging from high levels of activity through to sluggish conditions depending on the market sector and location in which they are operating,” she said.
“UDIA expects that the market will continue to firm throughout 2012, assisted by the low interest rates. It is anticipated that capital growth will return when the market stabilises later this year.”
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