We have certainly started 2020 off on a positive note, with a surge in market activity and steady increases in property values across Perth.
Data from the Australian Bureau of Statistics, revealed that December saw a 3.6 per cent increase in housing approvals across WA.
There is no denying that the market is turning, however we also can’t ignore the fact that conditions are still somewhat unpredictable.
Constant conflicting data and varying levels of growth across individual Perth suburbs paint a murky picture of the Perth property market.
However, this doesn’t mean that investors shouldn’t be looking for development opportunities, it just means they need to know how to navigate the waters.
The trick is not to anticipate exactly when the market will make a full turn into recovery, but to understand how quickly the change will happen.
By the time everyone is talking about how positive the market is, claiming that now is the time to jump on board, we are already in the full swing of the up-turn and your chance to make the most of the lower market prices is actually gone.
Seasoned investors know that there is opportunity in any market and understand how to make the most of the current situation.
Doing your research is key – research on locations, development types, which builders can help and which financial institutions are rewarding confident behaviour.
Many builders offer fixed pricing, so developers should look to get started now, because these builders will be forecasting this positive pressure and preparing for a potential increase in demand and prices.
Look for builders who are prepared for a market turn and have good resources in terms of trades and suppliers, as this will ensure your development runs smoothly, on time and on budget.
We are on the cusp of real positive change so now is the time to act.
Decide on your financial goals, do your research and be brave, now is the time for confidence. Don’t worry about what everyone else is doing, focus on your own strategy and you'll reap the rewards.