The 0.25% cut in official interest rates should see renewed activity from property investors in the Perth market for two reasons.

Firstly, baby boomers that have cash savings in the bank will be getting even lower interest rate returns on their money.

Secondly, it makes it even more affordable to buy a property in Perth where weekly rents have stabilised and rental returns are improving due to more competitive house prices. 

Historically, very low interest rates encourage greater activity by investors and Professionals expect this trend to be reinforced with the latest interest rate cut. 

The reality is that astute investors who buy in the right areas can still achieve double digit capital growth rates in Perth as underlined by the latest REIWA figures.

The top ten suburbs in Perth for the year ending the March 2015 quarter achieved annual growth rates in property values of between 11.5% and 24.8%. And you don’t need to buy into an expensive suburb to achieve these double digit capital growth rates with the median house price in Coolbellup increasing by 21.0% to $550,000 over the past year.

A growing number of these investors will come from inter-state due to the fact Perth properties are now competitively priced compared to major Eastern States capital cities. Professionals are already seeing renewed interest in the Perth property market from investors outside the State especially those living in Sydney and Melbourne where the media house price has jumped quite significantly over the past two years.