Another year of capital growth is on the horizon for the Perth Property Market - but it won't be at the same relatively high rates as 2013, local experts say. Momentum Wealth managing director Damian Collins said stock levels in the Perth property market and land market would increase throughout 2014 and into early 2015. Mr Collins said Perth was still in a rising market, but this cycle would be far less pronounced than the previous upturn cycle of 2003-2007, where prices more than doubled. The long-term fundamentals for growth are still solid but the days of 8 per cent-plus growth consistently on all properties is no longer here. Mr Collins said it would still be a seller's market, but those hoping for "blue-sky" prices could find themselves priced out of the market.
Perth Renters will continue to hold the balance of power in 2014, according to industry analysts. Momentum Wealth managing director Damian Collins said rates were either declining or "flattening" in most suburbs. This was caused by the large number of tenants becoming homebuyers and a slowing in population growth, Mr Collins said "I'd expect to see a flat year for the rental market. “The higher vacancy rates will deter some investors, but smart investors will be looking for creative ways to add to their yields, such as renovating or adding granny flats".
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