The Perth property market is going to see big changes in the year 2020. Property prices are looking like they are rising but at a slower rate than what they have been in previous decades. This is often due to the fact that the interest rates cannot go much lower. Big demographic trends are going to be a driving force. Perth is continuing to grow, as will the immediate surrounds of Perth. Public transport is becoming more favourable due to traffic congestion getting worse. We are going to see renters becoming a bigger powerful political voice this year. Landlords should ensure they have excellent Perth property management services enlisted during this time. Better property managers will be able to find the right tenant and ensure that properties have a tenant as soon as possible. By choosing the wrong property management team or property manager, landlords can have significant monetary losses and unhappy tenants. Therefore, landlords must choose wisely and conduct their research thoroughly.
Interest rates are remaining low
Interest rates are going to remain at a low level this year. It is unlikely that there is going to be property price corrections that are caused by rapidly rising interest rates. Due to the rates not falling much further, it is unlikely to be a cause for higher prices within the foreseeable future like we have seen in previous decades.
The decrease in interest rates was a global phenomenon. The rates were pushed down by the strong economic growth in Asia, the ageing population, the high debt levels and lower rates of economic growth. The causes for low rates are going to persist well into the 2020s, seeing global interest rates remain low.
Strong population growth will be spread out
There will still be a strong population growth that will continue, although it looks like it will be more spread out than what it was in the 2010s. With population growth continuing in 2020, it is going to underpin the ongoing strong demand for housing. Perth’s population is growing at a faster rate which is meeting up with the advancement of economies.
Medium-density housing and bigger apartments are being built in the 2020s
More medium-density housing and bigger family-friendly apartments are being built in the 2020s. Bigger apartments usually have three or four bedrooms and more communal areas like backyards and gardens.
When people are thinking about the trades offs between size, location and pricing, many stated they would prefer to live in a medium-sized home like an apartment, terrace or townhouse in a suburb that is closer to the city instead of a detached house that is located in the outer suburbs. There is a big undersupply of medium-density apartments and housing within Perth.
When Australian cities are growing, the congestion is getting worse, and the demand for medium density housing is becoming established, it will continue growing in this sector. Perth property advice is essential to obtain when investing, buying or selling in the current market.
The government are trying their best to keep the elderly at home for longer, so new dwellings are needed for the elderly to live independently at home. These homes need to be modified with safety features installed. The new dwellings need easy access and low maintenance gardens. Planning rules need to change, so these types of dwellings can be built.
The government need to undertake reform to enable retirees not to be discouraged from downsizing. Reforms include getting rid of stamp duty, changing planning rules and to include part of their home in the age pension asset test.