22nd August 2016.
A leading national property investment group has defied WA’s lacklustre market to label South Perth as one of Australia’s next big things in real estate.
Sydney-based Aviate has for the first time in a long time recommended its clients invest in WA, and specifically South Perth.
In its latest research report, Aviate flagged South Perth as a likely focal point of residential property investment activity in the near future.
The suburb’s close proximity to the CBD, the likelihood it will follow the inner-city trend of higher density housing and an an increased demand for inner-city living as the population grows are all cited as reasons to invest in South Perth.
Aviate head of investor education Jon Ilievski said now was an ideal time to invest, when the area was at or near the bottom of its growth cycle.
“Perth represents a value proposition for investors (with) the ability to get in low and ride the inevitable growth,” he said.
“The power sits with the buyer and not the vendor — this is not the case in the booming Sydney and Melbourne markets where the vendor has bargaining power.”
South Perth’s high proportion of 25-34-year-olds, at 15 per cent of the population compared with 17 per cent nationally, is also seen as a positive.
Aviate says people in this demographic have higher disposable incomes.
They also place a greater emphasis on lifestyle and leisure than families with children or those over 50. Apartments close to the CBD appeal to this demographic.
“South Perth clearly has the ingredients to attract the target demographic resident, and demand for housing stock in the district will intensify in line with the presence of population growth,” the report states.
South Perth’s population is expected to grow by 33.81 per cent in the next 10 years.