Login
ISCOVER
The Western Australia property market is bouncing back to life, according to two of Australia’s elite business writers.
House + Home Loans' managing director, Rael Bricker, said property values are now back at pre-global financial crisis (GFC) levels thanks to the growing mineral and mining sectors.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
“In the metropolitan areas of Western Australia, house prices are rising steadily and generally exceeding the 2006 levels,” he said.
“Property investors are returning to the market and reaping the rewards.”
Mr Bricker added that aside from increasing activity in the mining and minerals sector, investors are also starting to show more confidence in the property sector at the same time that rental yields are exceeding historical highs.
In addition, said Mr Bricker, valuation firms are responding to increased values and reflecting this in their reports.
“Investors are once again looking at property as a solid asset class,” he said. “In comparison to other asset classes such as shares which experience high volatility, investment property has proved its resilience through many areas of turmoil.”
Rate Detective Finance's managing director, Warren Dworcan, agreed and said rental yields are now exceeding 6 per cent, which surpasses the pre-GFC level of 5 per cent.
“Corporate and fully furnished property leases are experiencing almost unheard of rent yields of around 7 to 9 per cent. The unique function of the current markets in mining towns is driving rent yields as high as 15 per cent,” he added.
