Professionals Real Estate 
The volatility of the stock market during recent weeks is encouraging more investors to purchase in the property market in Western Australia, according to Shane Kempton, CEO of Professionals Real Estate Group.
Mr Kempton said that historically the Western Australian property market benefited when investors fled the stock market because of global uncertainty.
“During the period 1988 to 1990, the median price of a home in Perth nearly doubled following a downturn in the stock market. A similar trend also occurred during the mid 1970’s when the median price of a home in Perth nearly doubled in price as a result of falling share prices caused by rising world oil prices and inflation.
“Over recent weeks, billions of dollars have been wiped off the value of stocks on just one morning and this is causing fear amongst mature investors who are looking to retire in the near future.
“These mature investors realise that property is a low risk investment vehicle as many own their homes and appreciate the strong capital growth potential of property.
“The reality is that over the long term, the Perth property market is one of the best investments in Australia.
“For example, while the Sydney property market is now booming, the reality is that over the last decade, the median house price in Perth has risen annually by 7% compared to 3.8% for Sydney.
“It is no surprise therefore that Professionals has found strong demand for investment properties from baby boomers who are now taking their money out of the stock market and investing it in real estate.
“Many of these baby boomer investors are buying properties in lower priced coastal suburbs such as Heathridge, Beldon, Clarkson, Craigie, Rockingham, Warnbro, Waikiki, Beldon and Heathridge.
“Professionals Real Estate Group is finding that baby boomers are driving property sales in lower priced properties as much as first home buyers.
“Population figures show that baby boomers will play a key role in the WA real estate market over the coming decade. ABS figures show that almost a quarter (23%) of Western Australians will be aged 60 years and over by the year 2021, compared with 15% in 2001
“Fear is a major emotion that drives investors when the stock market begins to slump and this fear is encouraging a movement by investors back into property.
“Property in Perth is still relatively affordable and there is the potential for strong capital growth in selected areas due to major new infrastructure investment.
“Overall, the outlook for the Western Australian economy still remains very positive and this will give confidence to investors who are considering investing in the local real estate market during the coming year,” he said.
ENDS
