THE Perth property market in Western Australia has bottomed out and is attracting Malaysian property developers.
According to a report from Momentum Wealth, a Perth-based property investment adviser, the market is now in a recovery phase.
Entitled “Residential Property Spotlight: Perth”, the report showed that the worst was behind the Perth property market, following a three-year downturn during which supply outweighed demand amid record-high housing construction and slower population growth.
There are some positive trends in the market such as the tightening housing supply and high affordability which are expected to draw buyers back into the market.
Perth’s population of around 2.1 million is also poised to rebound as the labour market continues to strengthen.
Real estate experts believe the overall Western Australia property market would improve, relative to the rest of the country over the next two to three years.
They expect house prices to rebound and grow 1.3 per cent.
As of March, the median house price in Perth was A$506,500 (RM1.5 million), with a lower quartile price of A$405,000. Median rents were at A$360 a week with lower quartile rents at A$320 a week.
GOLDEN CITY LAND TO GROW IN PERTH
Golden City Land Pty Ltd director Datuk Saudagar Singh said there has never been a better time to invest in Perth while the property market is correcting and expecting a great upturn.
“While Sydney and Melbourne’s house prices have skyrocketed, Perth’s property market is still affordable and welcomes Malaysian investors as a stepping stone to the Australian property market.
“Perth has been gaining some serious interest from Southeast Asian investors, particularly Malaysians and Singaporeans, due to its strategic location and close proximity of being merely five hours flight away,” he told NST Property.
Golden City Land offers a complete 360 degree service when it comes to properties which includes consultation, acquisition, development, sales, leasing and management for Malaysian investors targeting to invest or develop in the Perth market.
The Perth-based company has an eye on the niche market of providing quality investment options suited to overseas property investors, particularly Malaysians.
It launched its maiden project, Golden City Apartments on 85 Surrey Road, Rivervale, in Perth in January last year.
The A$3.5 million project, which was completed in April this year, features a cluster of eight exclusive fully furnished two bedroom apartments ranging from 800 sq ft onwards.
The company has sold seven apartments priced between A$420,000 and A$440,000, mostly to Malaysians, said Saudagar.
He said the buyers were not only attracted to the location and pricing, but also the guaranteed rental returns for two years with a net rent of A$230 a week and option to further renew.
In addition, the buyers get a seven-day free stay at their investment home throughout the year, he added.
The developer had retained the eight and final unit and is releasing it now into the market as real estate demand in prime areas picks up.
Saudagar said the unit is priced at A$425,000 and loan options are available for the prospective buyers.
The Golden City Apartments is strategically located and centralised between the Perth CBD (central business district) and the Perth Airport, both being 5km or 10 minutes drive away.
The Crown Casino in Burswood is merely five minutes drive away and a billion-dollar world-class stadium, set for completion early next year, is located just footsteps away from the Golden City Apartments.
There have been reportedly more than 30 events lined up this year for its grand opening in February next year.
Located 1km away from the apartments is the Belmont Business Park which incorporates 825 businesses, while 3km away is the Belmont Racecourse.
“This augurs well for the owners of Golden City Apartments who will be able to lease their properties,” said Saudagar, a seasoned property investor, developer and hotelier in Malaysia and Australia.
Meanwhile, the company’s head of property (sales and leasing) Balveen Kaur believes that “quality is the best business plan for growth”.
“Your customers measure you on what you deliver. It is the best kind of advertising. This is proven based on the success of our project in Perth. There were no advertisements for this project. We sold the seven units through word of mouth. Riding on this, we will continue to embark on new projects in Perth, albeit cautiously,” she said.
Golden City Land is looking for more land to acquire not too far from the Perth CBD to undertake niche developments to cater to the discerning market, said Balveen.
“We have recently purchased a 2.2ha parcel located 15 minutes from the Perth CBD. This is going to be another exclusive boutique development,” she said.