Mining was the hip industry in Australia years ago. It was the reason several business people from around the world spent millions of dollars in their investments. Even though that trend saw its end, foreign investors, particularly the Chinese, continue to keep their ties with local businesses.
The current business trend for Chinese entrepreneurs is property development. Reports say that the country’s median house price increased to as much as $660,000. Not all capitals yielded the same result, though. Perth and Brisbane saw a decline in value, but Perth seems more affected with its 2.7% slide.
Ideal Place to Buy Properties
With the prices of houses in the capital city of Western Australia declining, many see the opportunity to purchase properties now. Several new developments in Perth are underway and more investors are coming in. But is this move logical today and in the long run?
Property investment groups collectively say that buying into the Perth market today runs lesser risk than doing it in other capitals, like Sydney and Melbourne. According to REIWA, the median house price decreased by $5,000 for the March quarter.
Not an Area of Concern
Unlike in Sydney and Melbourne, Perth’s median house price of $545,000 is not that concerning. Rather, it’s a classic case of falling prices and decreasing confidence. Officials predict that the price would continue to slide in the next two financial years before steadying in 2017-18.
Buying properties in Perth today may present a few risks, but next year the greatest risk will be in Sydney. That same time is the most practical time to buy Perth properties.
Western Australia’s economy thrived when the mining business boomed in the country. With the current changes taking place, buying properties in Perth today is a rational move for businesses.