Summary Western Australia’s Property Market Sees 37% Annual Rise in Investor Loans • Western Australia’s property market is attracting significant investor interest, with a 37% annual surge in investor loans. • Perth is attracting substantial interest, with house prices rising by 23.8% year-on-year. • Regional areas like Dardanup and Withers have seen property values rise 26.6% and 25.2%, respectively. • Investor loans now account for 38% of new loans issued, a rise from 22% in 2020. • The lack of supply in WA is pushing investors to consider opportunities in Victoria and South Australia. • Investor loans are up 13% annually in New South Wales and Queensland, and 7% in South Australia. • The average investor loan in WA is $454,000, a 9% increase over the past year. • Despite a 7% decrease in national value of investor loans since peaking at $127 billion in June 2022, WA’s loan value soars from $7.8 billion in June 2022 to $11.8 billion, marking a 54% increase above the previous peak.

 

The data shows that the number of investor loans is rising by 37% yearly, which shows that investors are paying a lot of attention to Western Australia’s real estate market. This sharp rise is more than three times the normal growth rate for the country, which is 11%. This makes Western Australia a major player in the Australian real estate market.

 

This high rise comes at a time when investors are still very interested in Perth. House prices in the capital city have gone up 23.8% year-over-year. In the meantime, property prices have gone up even more in regional places like Dardanup and Withers, where they’ve gone up 26.6% and 25.2%, respectively.

 

A data expert brought attention to the larger trend of increased investor activity throughout Australia. Investor loans currently account for 38% of new loans granted, which is an increase from the 22% that was the case in the year 2020.

 

The number of investor loans in the state of WA is increasing at a rate of 37% per year, making it quite the golden goose. This investor interest is being propelled by five important factors: the rising population of the state, the increasing property prices, the high demand for rental properties, the low vacancy rates, and the increase in resources in the area.

 

But there are signs that the market in WA may be almost at its peak. We think that buyers are now looking at possibilities in Victoria and South Australia, where property prices are higher, because there aren’t enough homes for sale in Western Australia.

 

Investor loans in WA have grown steadily over the past five years, but home prices in the state are now higher than what investors may be willing to pay. There is too much money in the market, and the bubble will finally pop.

 

Although Western Australia is the state with the highest growth in investor loans, other states are also experiencing varying degrees of growth. Investor loans are at an annual increase of 13% in New South Wales and Queensland, and 7% in South Australia. In contrast, Tasmania and the Australian Capital Territory have both experienced annual decreases of 3% and 5%, respectively.

 

The average investor loan in Western Australia is currently $454,000, which represents a 9% increase from the previous year. In contrast, the average investor loan in New South Wales is $749,000, which represents a 6% increase, while the average loan in Queensland is $520,000, which represents a 9% increase.

 

More information shows that the value of investor loans across the country has gone down by 7% since its high point of $127 billion in June 2022. However, the value of loans in Western Australia has gone up from $7.8 billion in June 2022 to $11.8 billion, a 54% rise from the previous high point.

 

Also, building loans for people who live in their own homes have gone down, but loans for investors have gone up by 23% a year. A big 20% growth rate has also been seen among first-home buyers who use investment loans over the past year.

Want to ride the wave of Western Australia’s booming property market?

With Perth and regional areas experiencing significant growth, now is the ideal time to invest.

ASK Financials is here to guide you every step of the way. Our experienced team of experts can help you:

• Identify lucrative investment opportunities: We’ll pinpoint the most promising areas within WA, considering factors like population growth, infrastructure development, and economic trends.
• Secure the perfect property: Whether you’re interested in a residential home, commercial building, or land, we’ll assist you in finding the ideal investment that aligns with your goals and budget.
• Navigate the buying process: From property inspections to negotiation and settlement, our experts will provide valuable advice and support throughout the entire transaction.
• Maximise your returns: We’ll help you develop a strategic investment plan that maximises your long-term financial gains.

Don’t miss out on this exciting opportunity. Contact ASK Financials today to schedule a consultation and start your journey toward financial success.

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