Light at the end of the tunnel for Perth homeowners
It’s no secret that the Perth property market has taken somewhat of a beating lately. With CoreLogic RP Data reporting that the city has suffered a 4.66 per cent drop in values over the last 12 months, as well as a significant fall in mining activity due to the resources boom going bust, the capital of Western Australia has certainly seen better days.
However, the property market in this western city is anything but dead yet. Serious changes could herald the start of something new for this transitioning metropolis.
The mining industry, redefined
Mining exploration and investment is dropping.
One of the main issues that the property market of WA in general has to hurdle is the plummeting efficacy of its mining industry. The commodities that pushed Australia into becoming one of the foremost economies in the world came straight out of the ground, but they aren’t quite as valuable as they once were.
Mining exploration and investment is dropping, and with it are the employment prospects in this industry, dragging property prices down with the shattered demand. Real estate confidence has dropped by a significant margin over the last three years according to an ANZ/Property Council survey, while many investors and homeowners gnash their teeth in worry about what the future holds.
A bright, halogen light at the end of the tunnel
Perth still retains a place in the top 10 most liveable cities on The Economist’s famed index.
However, here are a few facts that still demonstrate Perth could well be on the way to recovery. Property values have fallen, it’s true, and the mining industry has taken a tumble; but it may well soon be getting back on its feet. Lithium is quickly becoming the material of choice for the advanced batteries that powers a great deal of modern technology, and Western Australia is one of the places you can find it in literal spades.
Meanwhile, on a less economic front, Perth still retains a place in the top 10 most liveable cities on The Economist’s famed index, and it looks like that reputation is set to continue despite the drops in value. With new public transport infrastructure and additional environmental projects either being planned or ongoing as we speak, Perth is still very much a great place to live.
Current trends might have put the capital of Western Australia on the back foot, but it could very well spring back into top form as the mining industry gets a firmer grip on the local economy. Perth is far from knocked out yet!