There is obviously a large volume of property related data and reports that emerge on a daily basis, and unfortunately much of it shares the negative side of the equation when it comes to house prices – maybe because it captures more attention – however sometimes it can be somewhat misleading.
It’s sometimes good to look at the data as it relates specifically to the place where you might live, as the markets around Australia can be vastly different, as we have seen historically with the different cycles from over East to here in the West (some of you may recall the “two speed economy” which was touted when the Perth house price increase was vastly out performing the rest of the country.
The recent June Quarter 2022 REIA Market Facts report shows that Perth’s median house price was at $530,000, but the interesting part of this is that it is 47.6 per cent lower than the national average, and lower than any other capital city in Australia, making Perth the cheapest of all capital cities in Australia. This is also evident in the Unit market, with Perth also coming in the cheapest.
Over this same period, the national average house price “combined” showed a decline in house prices overall, which tends to be what is reported. However looking at the Perth market in isolation, the data clearly shows that the median house price in Perth increased 2.5 per cent. The national average included declines over the same period in Sydney, Melbourne, Canberra and Hobart.
Anyone who follows the property market and looks at the different markets segments, rather than the national average or the media that focussed strongly on the eastern states, knows that there is very strong interest in the Perth market, with prices not declining and rents continuing to rise, making it attractive for both owner occupiers and investors alike.
Sydney and Melbourne experienced quite massive and fast growth, so any growth like that is generally followed by a slow down or retraction, which we are starting to see occur in those regions and was not unexpected. Perth however has not seen the same massive growth, and is still well under the national average so is seen by many with plenty of room to still grow.
The other factors affecting the Perth market right now is the lowest rental vacancy rate on record, making tenants have to compete for rental properties that are available, which inevitably puts upward pressure on rental prices. This is coupled with extremely low levels of properties for sale, also putting upward pressure on sale prices, with more buyers than sellers currently in the market – otherwise known as a Seller’s Market!
With over 20 years of local knowledge, please feel free to reach out if you have any questions about the real estate market. We’re here to help.
