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Perth Property Developer Implores Renters: Do Everything You Can to Become a Homeowner

Announcement posted by Origin Projects - Land & New Homes in WA 22 May 2013

Developer of house and land packages in Perth suburbs reveals why renters could soon struggle in Perth and suburbs.
Perth, WA, May 22, 2013 - In a recent blog post on their website, 4Land Property Group alerted its readers to a recent report from statistics firm RP Data. The report, called Autumn Investor Guide, predicted that both rents and property values would double in many Australian suburbs in the next ten years.

RP Data identified suburbs whose rental and housing sales markets had the potential to double in the next ten years. Due to compounding, a steady growth of 7.2% over ten years causes prices to double in ten years. Consequently, 7.2% annual growth became the baseline number for suburbs predicted to double by 2023.

The report found 263 suburbs that showed the necessary growth to double housing prices, but found 792 suburbs where rent is projected to double in the same time frame. In another 582 suburbs, rents were projected to undergo an annual growth of 5.5% or higher per year.

Victoria and NSW had the most suburbs projected for prices to double, with 68 and 65 respectively. Sydney had the most suburbs with rent projected to double, with 249. Perth would come in second with 181 suburbs poised to see rents double in the next decade.

The only possible mitigating factor for Perth and WA is that they have been in a mild growth pattern for five years, due to the mining boom. There is a chance that the State’s growth will level off before ten years is up. However, even if growth in Perth and WA does level off, RP Data analyst Cameron Kusher still projects a lot of opportunity in the area for at least the next five years.

For those who are in a position to purchase a home, or for property investors, the report is seen as good news, because those who buy now could see their home’s value double in the next ten years. This report is not great news for renters though as it indicates that rent prices are going to continue to increase, and that rents are growing at a faster percentage than income, even in the middle of a mining boom.

According to Lauren O'Connor, Marketing Manager of 4Land Property Group, renters who wait too long to buy a home could find themselves frozen out of the housing market: “We all know that the biggest hurdle facing first home buyers is finding enough money for the deposit. When it used to be relatively inexpensive to rent a house, it made sense for many to rent, and take their time before buying.”

O'Connor continued, “We have watched the market here struggle to make it back after the global financial crisis. Even with the mining boom, housing seemed to be the last thing to recover. But the market has rebounded, and it is now more expensive to rent than it is to make home loan payments in many Perth suburbs.”

O'Connor added, “We have developed six successful communities, many of which specialise in first home buyers. Because we have been able to offer house and land packages for approximately 30% less than the cost of the median established home in neighbouring areas, we have had a very active market for our properties.”

O'Connor concluded, “But this announcement could make prices rise even faster. If you wait too long to buy a house, it could be too late.”

4Land Property Group develops house and land packages in planned communities in Perth suburbs and outlying areas. Call 08 9301 4445 to learn more or visit their website: http://www.4land.com.au/.