While I agree with Margaret Lomas’s comments regarding investing in Perth, that it is not yet time with other better opportunities available, there are a number of growth drivers in play in addition to it being the administration centre of the mining and resources industry. While manufacturing is sadly in decline, banking, stockbroking and insurance are contributing more to Perth’s economy than manufacturing.
Although Sydney remains Australia’s financial hub followed by Melbourne, Perth is benefiting in prominence from Asia with its resource hungry appetite as well as being in the same time zone. Global legal firms and new banks are also descending to Perth with mine related work.
Hotel accommodation is constrained and is poised for a development growth. Rental values have been rising and availability has been for a few months under 3 per cent indicating a shortage of available rental accommodation.
But is it time for the property investor to be making an investment purchase? Perth house prices were hit by the Global Financial crises, but declined from a high base. The well educated investor will look for cash flow positive property producing capital growth for their wealth accumulation and that still may be difficult to find in Perth. And, with so many other areas with strong growth drivers an investment purchase may be hard to justify at this time.