Opportunities Arise with Real Estate Value Increasing in Perth



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, Western Australia

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.

Comments

  1. Agree that Perth Real Estate has taken a beating over the past 12 months and that it has become much more challenging for sellers to sell their home. Perth sellers have had it too easy in the past decade and have seen record prices and selling times.

    This is no longer the case, however they are complacent in their view of “Sprucing Up” their property ready for sale. Much of the value lost in the market, I believe is due to this complacency and that the 5-7% discount experienced by over 70% of the sellers is due to their lack of investment to makeover and style their property ready for sale.

    Perth Home Owners can no longer afford to sit on the hands and think the real estate agent can wave a magic wand and get the property sold and get top dollar, if the property is in poor condition or poorly presented.

    Sellers need to invest a minimum of 1% and this can easily return 2-3 times the value of their investment in preparing their home for sale.

    The suggested rise for 2012 is a forecast and can be supported by a change in attitude by the seller to see their house as a product that needs to be prepared, packaged and presented for sale. Just like you would any other property you wish to sell.