Perth property predicted to spike once borders open
18th November, 2021
Perth’s impressive property affordability rates and elusiveness from the pandemic has made it more appealing than ever to make the switch from the east coast to the west.
Many Perth real estate agents, such as Realmark Coastal Sales Associate Karen Riches, are receiving constant interest from buyers based in the eastern states to buy properties in Perth.
“I’m getting at least a call a day from someone originally from Perth in Sydney or Melbourne moving back, or they’re moving over here for the first time,” she said. “Every day I get at least one.”
Realestate 88 Inner City Selling Principal and Director Brendon Habak said he expected a temporary spike in prices and interest as buyers from the eastern states would bring even more demand for Perth properties as borders opened up.
“I think there will be sort of a temporary spike,” he said. “A lot of people have already started purchasing over here in Western Australia, some of them sight unseen.
“But once the borders open, the people who want to come, touch and feel the home to know what they’re buying will be pumped to purchase what is very affordable housing compared to the east coast.
On whether homeowners with investment homes should look at preparing their homes for sale – Mr Habak said it was a good idea.
“I think it’s a really good idea to get homes prepared, if they’re thinking of selling – borders opening up can’t be a bad thing,” he said.
“I’d probably say fix all the little things that have been on your routine inspections from your property manager to fix up.”
Speaking to a local real estate agent who can give suggestions on the right time to sell and the type of sale is also key, according to Mr Habak.
“Work out when is a good time for less competition, and that’s how you’ll maximise your price,” he said. “If the tenancy is coming up to completion and the property needs a full repaint, having the tenants vacate the property makes it a lot easier.
“Do the little things like lighting upgrades and curtains, and all the bits and pieces like floor coverings – get it ready to go and then sell it as a vacant shell. I think it’s actually a lot easier to sell, they can get a better price.”
Mr Habak said owners without an investment property could also capitalise on the spike of prices, with some clients choosing to sell now and rent while they wait for better purchasing prices. Other clients may find that the ideal selling conditions make it a good time to change their living conditions, either by downsizing or moving into an apartment.
“If you look at our rental return versus capital purchase price, our returns are actually better than a lot of areas in the east coast,” he said. “So I do think that if the borders were open there would be a little bit more money trickling into WA.
“There is quite a bit coming now, but there’s definitely going to be some more.”
Sourced from The West Australian