Where is Perth in the Property Cycle?

Research

Property the best and safest long-term investment

The ANZ Bank Australian Property Outlook – January 2008 states that “In raw terms, since 1984, residential property has enjoyed an extraordinary compound annual total return of 13.4%, only slightly below that of equities (13.8%) and far above both commercial property (10.3%) and bonds (9.4%).  But in risk-adjusted terms, residential property has delivered vastly superior returns to all other asset classes.  … In risk-adjusted terms since 1984, residential property returns have more than tripled those of equities and more than doubled those of commercial property and government bonds.”
Perth property investors have just seen the truth of this, and most have large amounts of equity embedded in their properties.

Using property cycles to accelerate wealth creation

Australia’s various property markets move in different cycles - for example, in recent years Perth has boomed, while Sydney has been flat.  The astute investor can dramatically outperform the national average figure reported by ANZ, if they buy only during the part of the cycle where prices are rising.
Astute WA investors are well placed to do this.  They can replicate their recent success in Perth, by leveraging their embedded equity to move into areas that are in the “rising market” phase of the property cycle.
To find these areas we turn to Herron Todd White (HTW), who is the largest independent property valuation and advisory group in Australia, with over 400 staff across 40 offices.  They are independent because they only conduct valuations - they neither sell nor develop property.  HTW's February 2008 "This Month in Review" consists of a 43 page report assessing the position of each residential region in the property cycle, ranging from:

1. Bottom of market
2. Start of recovery
3. Rising market
4. Peak of market
5. Declining market

Investors aim to purchase in phases 2 (start of recovery) and 3 (rising market).
HTW’s view is that Perth is at the peak, but select parts of the Eastern seaboard are in phases 2 (start of recovery) and 3 (rising market). 

About Us
We are a boutique provider of well-researched property projects.  We mostly consult to financial planners, mortgage brokers and accountants to provide them with investment properties they can confidently recommend to their clients. We are based in Sydney and we specialize in the Sydney and South East Queensland markets.
We have identified excellent properties in areas of the Eastern seaboard that our research says are at the right stage of the property cycle for capital growth, can provide excellent rental returns (5% or better), and are modestly priced to suit the small to medium investor.  If you would like (at no cost or obligation) more information about the projects we have available in these locations we would be very pleased to hear from you.