This month, NextHotSpot.com.au has contributed the market report for WESTERN AUSTRALIA
Perth continues to be the capture point for the benefits of WA’s resources revolution. The workforce demands of the Pilbara and other areas have created towns with pricing beyond the threshold of sound investment strategy that should be avoided by most investors. Recent news confirms that Perth leads the nation’s property markets – no surprise at all, given that it is also the leading centre of population growth on the back of mining-related investment.
In dollar terms, WA attracts far more resources investment than any other state or territory in Australia. According to RP Data, 24 of the top 50 long-term capital growth performers of the last decade were found in WA. Of these, 14 were affordable suburbs in and around Perth, which is an even stronger capture point for the wages of FIFO mining workers than Brisbane is in Queensland.
We like affordable areas around Midland, Murdoch and Rockingham, but there are many well-priced areas with strong growth prospects. The consumer confidence returning to parts of Sydney has always been present in Perth. The retail trade is a good example of this: while turnover has been at or dropping in much of eastern Australia, it continues to grow at around 1% per month in WA.
Remote mining areas such as Port Hedland and Newman in the Pilbara have attracted attention for their outrageous prices. Perth was identified in the federal government report on FIFO workers as the area in WA where these well-paid transient workers spend their dough, and that’s where you can take advantage.
