Sales Activity Picks Up, As Recovery In Perth Market Gathers Pace
In the special webinar I hosted on Tuesday 24 March to discuss the impact of the coronavirus on real estate with Rich Harvey of propertybuyer, one of the key themes was that the current situation presents opportunity to property investors.
The situation inevitably impacts property markets – the restrictions on auctions and open for inspections makes marketing more difficult, as one example – and I expect some of the major markets to take a short, sharp hit.
But it will be relatively short-term in nature. And, I suspect, not particularly dramatic.
Real estate has a very good track record of strong and resilient performance in times of crisis – such as the big sharemarket crash in the late 1980s and in the wake of the Global Financial Crisis in 2008, following which real estate generally delivered strong price growth.
Nevertheless, there will be impacts – and that will present opportunities for investors.
One market which presents particularly good opportunities is Perth.
During that recent period since 2013/2014, when Sydney and Melbourne were having their booms, Perth was in downturn, due to local economic conditions.
Coming in 2020 the Perth was showing definite signs of recovery. The local economy was growing again and vacancies in the residential property market had dropped significantly.
Sales activity was rising and we were seeing the first evidence of a return to price growth.
So, now, amid the virus crisis, that recovery will inevitably pause.
But the underlying fundamentals are good.
And all this means that Perth presents opportunities for investors able to think longer-term, which is the mindset all investors should have.
There will be opportunities to buy well ahead of future growth - always remembering that Perth’s history is one of strong growth in its economy, population and property market.
In my new 2020 edition of Top 5 Perth Hotspots, I highlight the locations that present the best opportunities to buy well with prospects for future growth.