- Perth property investment company, Momentum Wealth, believes property investors are fast returning to the Western Australian market
- This follows the latest figures from the Australian Bureau of Statistics (ABS) which says finance to property investors in WA jumped 95 per cent in 2021
- According to new research, property values in Perth have climbed over 22 per cent since late 2019, totalling $5.618 billion
- New data also shows property prices are expected to rise a further 10 per cent in 2022 with the cost of renting also likely to climb higher
- The cost of renting in Perth has increased by around 15 per cent in the year to early 2022 pushing up rental yields to 4.4 per cent
Perth property investment company, Momentum Wealth, believes property investors are fast returning to the Western Australian market.
This follows the latest figures from the Australian Bureau of Statistics (ABS) which says finance to property investors in WA jumped 95 per cent in 2021.
The ABS said housing finance to investors in WA totalled $5.618 billion for the 12 months ended October 2021, up from $2.883 billion in the preceding 12 months.
Momentum Wealth cites several factors that are driving investor activity in the state, including affordability, strong price growth, high rental yields and a robust state economy.
“While these value gains are seeing many property owners benefit from an uplift in equity, Perth also remains one of Australia’s most affordable state capitals, which is placing investors in a strong position to now expand their portfolio,” Jennifer Wakeman, General Manager of Momentum Wealth, said.
According to research from CoreLogic, property values in Perth have climbed over 22 per cent since late 2019. This research estimates median home value sits at $528,551.
New data from REIWA also shows property prices are expected to rise a further 10 per cent in 2022.
REIWA claims rental listings are likely to remain below historical averages, yet tenant demand will remain high. This will likely see rents continue to climb higher in 2022.
While property prices increase the cost of renting has as well. That is according to data from SQM Research which confirmed that rents for Perth houses climbed 15.2 per cent in the year to early 2022.
Rental yields have also increased to 4.4 per cent following data from CoreLogic, which surpasses yields in Sydney, 2.4 per cent, Melbourne, 2.7 per cent, and Brisbane, 3.7 per cent.
Ms Wakeman said the Perth property market offers exceptional opportunities for investors.
“As we head into 2022, property values are still below the June 2014 peak, so there is plenty of scope for upside growth, and REIWA is predicting further price gains of 10% in 2022,” he said.