Sydney’s median house price has reached $1 million, with no sign of slowing down and unfortunately cutting luxuries like eating out and travelling will only scratch the surface of the deposit needed to get a foothold in this hot property market.
It’s time to look further afield than the outskirts of Sydney as an alternative to the more popular inner suburbs of Sydney and for many, investing in Perth could be the answer.
Affordable House Prices
At this point in time, Perth presents an incredible opportunity for those locked out of the Sydney and Melbourne property markets who don’t want to wait decades or sacrifice their lifestyles to secure their future. Most analysts agree that Perth is very close, if not already at the bottom of the property cycle so now would be a strategic time to buy from panicked sellers.
Perth currently has some of the lowest houses prices in Australia and some of the highest wages coupled with a government which is committed to boosting infrastructure spending; the perfect combination for savvy investors.
The difference in median house price between Sydney and Perth is at a record high, with the median price for Perth apartments sitting at around $471,500 and at $850,000 for houses compared to $820,000 for an apartment in Sydney and over $1 million for a house.
Steady Employment Figures
Perth employees also enjoy one of the highest average annual earnings in Australia at $68,952 compared to $62,088 in Sydney and $57,772 in Melbourne.
You may have heard that the mining boom is over and it makes sense that confidence is low in Western Australia since residents went through a period of job losses creating nervousness state-wide. However, the job market appears to have stabilised and will lead to an increase in confidence, with recent reports of more jobs certainly contributing to this.
Western Australia’s unemployment rate has decreased from 6.6 per cent last December to 6.4 per cent which compares favourably to Queensland at 6.4 per cent and Victoria at 6.1 percent considering the Eastern States are currently experiencing increased demand in the housing construction sector.
Government Infrastructure Spending
The Western Australian Labor government also has a mandate headlined by major infrastructure investment, a focus on job creation and debt reduction. Metronet is the first major infrastructure project the government is looking to introduce, beginning with the Thornlie to Cockburn rail link.
Other significant projects underway in the state include the Perth Stadium and the new six-star Elizabeth Quay Ritz-Carlton Hotel and Towers. Qantas also recently reached an agreement to run direct flights between Perth and London which will position Perth as an international hub for both business and tourism.
Golden Opportunity for Savvy Investors
Perth has a really bright future and it’s only a matter of time before the market begins to take notice. It presents an opportunity for people to own and pay off their own homes faster, earn higher wages and enjoy a growing city. For Sydney-siders, investing in Perth property means you can have your smashed avocado and eat it too.