The development of the city correlates with population and ultimately price of property. Therefore, Perth properties are still relatively cheap. You can buy a good 2 by 1 or 3 by 2 unit for much less than if it was in Melbourne or Sydney. If my theory is correct, the property price of Perth will eventually catch up to Melbourne and thus a bigger margin of profit can be obtained if you purchase a property in Perth now than in Melbourne.
Is it safe to now conclude that Perth is a better buy in general than Melbourne? I am no expert and seems you guys are and would appreciate your thoughts to this.
Kind regards,
Jo
Hi Jo
This is what has happened recently in Perth, no guesses, the facts
2012- (mid) 2014 - rising market Perth
Properties that performed that had the greatest growth were generally development sites.
Perth market is currently falling back or going sideways. Why? because there is more stock coming on the market, supply vs demand. When we had a rising market in Perth, I believe it was something like 30% FHB jumping in, not the case at the moment
The logic that Perth will catch up to Melb is flawed, there are many other factors to consider than just population growth.
Perth is cheaper than Melb? there are so many areas/suburbs I don't really understand this comment, one size does not fit all.
I actually see the opposite in my particular market in Melb, if I compare proximity/km to CBD
Happy hunting, just keep looking/researching. If you still think you want to buy in Perth, don't rush, you have plenty of time for reasons mentioned above.
If you considering Melb, you need to work on this now as the market is moving fast in certain pockets.
MTR