Phil's Property Corner
March Market Update
Thank you for your continued support as a referral partner with Candour Property Group. I have included my Monthly Market Update below.
March has seen the quiet optimism in Perth’s Property Market and Economy continue to build. Commodity prices have now been holding steady for a number of months now, bringing an influx of royalties payments to WA and encouraging many mining companies start hiring more staff and expand their exploration for new mining sites.
The first commodity that comes to mind when we think about the ‘mining boom’ is Iron Ore.
Mining this resource has been excellent in generating income and employment in WA but for the most part we exported only the raw ore overseas. The nations that imported this ore then processed it and created far more valuable commodities such as steel, many see this as a missed opportunity for Western Australia in terms of jobs and income to the state.
It appears that we have learnt from this experience. There are very positive signs beginning to gather momentum around a little-known WA commodity, Lithium. Already in operation 90km south of Bunbury is the world’s largest Lithium mine, which is undergoing works to double in size over the next year. In even better news however, WA is also building the world’s largest Lithium processing plant in Kwinana, creating over 500 jobs in the next 12 months.
The West Australian has written about Lithium and what it means for WA in this article and many are coining this the ‘Beginnings of a boom, without a Bust’. Lithium is used in mobile phones, electronics and very importantly electric cars. The international demand for Lithium is soaring and is predicted to continue to grow as the world starts moving away from fossil fuels and towards greener methods of transportation. In fact, by 2025 it is predicted that Lithium will bring more income to Australia than Iron Ore and be potentially responsible for hundreds of thousands of new jobs. The WA government is believed to have a task force to ensure that the majority of these jobs stay in WA.
There continue to be positive signs in the Perth property market, especially in the rental vacancy rate, we now have the lowest vacancy rate we’ve seen in two years (REIWA wrote about that here). Lower vacancy rates tend to increase rental yields, making the positive yield property investments we arrange even more attractive. This change has happened quite rapidly too, only 6 months ago the rental vacancy rate was at 7.3%, it’s now dropped two percent to 5.3% and appears to be continuing to drop.
There are some excellent opportunities for property investors in WA at the moment, we are very excited about one location in particular which is near to a couple of major infrastructure projects that will drastically improve accessibility. Property investments in this area are currently being purchased significantly under current market value with a very solid rental return.
If you would like to know more the first step is to have a chat with Phil Bertram who can book in an appointment for you to find out how this works for you. There is no obligation to proceed any further and he doesn’t charge for his time.
To arrange for him to call you please email him with your name and contact number on firstname.lastname@example.org and he’ll be in touch. Or contact him directly on 0477 228 803.
Please click on the green link below to visit our webpage.
You can find all previous Market Updates here.