It looks like a great time to invest in WA property. Rather than just existing houses, the real boom is in building; home construction is on the rise across Western Australia and experts forecast that the trend is here to stay.
Creating your own home from scratch is a dream held by many but the cost and hard work involved can be a real deterrent. That’s all changing in WA and prospective homebuyers in WA are now making that dream a reality, capitalising on affordable prices with high quality results. With the recent announcement that Perth is now the cheapest Australian state capital to build in, it may be also the perfect time to start investing in refurbishments and extensions, whether in your own home or to increase the value of investment properties.
The West Australian newspaper recently reported that building prices are currently low and with high competition among tradesmen, resulting in great value for consumers, however, this could change as demand increases.
Justin Smith, Smartline Rockingham Principal, said that construction rates are expected to improve heading into the second half of the year.
“We’re seeing more people looking to buy land and build homes and investment properties. This is a positive sign of economic health and a leading indicator for property market growth,” Smith said.
The Real Estate Institute of Western Australia (REIWA) and the Housing Industry Association (HIA) have predicted a 7% increase in residential building this year, a cautiously optimistic figure but one that Smith believes is accurate.
“A 7% rise in residential building is achievable and we could see it go as high at 10% given the positive start to 2018 so far.”
It may be a good time to build but that doesn’t mean that people should ignore the market for existing houses. REIWA also forecasts a rise in the amount of house purchases over the next few months, due to a gradual increase in the state’s population. The Perth property market is certainly active at the moment, with house values in suburbs like North Fremantle rising by tens of thousands of dollars.
WA was recently ranked the most affordable Aussie state, with Perth the cheapest mainland capital city to live in. If that’s not enough to attract homebuyers, a Chamber of Commerce and Industry review is projecting that the state’s economy will grow 0.9 per cent next year and 2 per cent the year after that. All in all, WA is looking up as a place to invest in property, whether you want to buy or build.