The city of Perth has seen a recent increase in the value of real estate, a trend analysts expect to continue in the city’s suburbs in 2012. For some real estate firms, this is a golden opportunity, and Perth’s resources boom is a field of ripe opportunities.
Perth is the largest city in the state of Western Australia, and thanks to a steady flow of mining activities in the state, investors are rushing to buy up office space in the city. In 2011 alone, over $880 million were exchanged in office real estate. This is a big plus for Western Australia, which has enjoyed a relatively good real estate market compared with the rest of the western world.
“Our mining, banking and financial sectors are capably run and the legal infrastructure, technology, quality management and transparency of laws and business make Australia a very easy place to do business,” explained Imran Mohiuddin, head of Colliers International in WA.
Many foreign investors, Mohiuddin said, are looking to move their money to safer waters, which just so happen to be in Australia. Rather than risk their investment money on the turbulent real estate market of Europe, they are choosing cities like Perth to secure their finances.
For homeowners, the news may be good as well. Forecasters expect home values in Perth suburbs to rise 5 percent in 2012, a welcomed improvement over 2011 stagnation. Some believe the Reserve Bank of Australia will also cut interest rates for the third time in as many months to help offset the effects of the economic turmoil in Europe. For many in Australia, however, the future looks bright.