Home in WA - Perth Market Update
In episode 28 of Home in WA, host Jon Williams shares some exciting data that shows just how well-positioned Perth’s property market is compared to the rest of the country.
Home in WA has now wrapped up for the year. We hope you enjoyed it, and thanks for tuning in!
The strength of Perth’s property market
Over the last decade, the Perth property market has been on a very different trajectory than other parts of the country. In 2021, the Eastern States saw some prices increase by a staggering 25%, while WA enjoyed a much more moderate and sustainable growth of just 13%.
Right now Perth is the most affordable capital in the country, with a median house price of just over $550,000.
With a strong state economy, a rejuvenated mining sector and a low unemployment rate, people are once again heading west for a better quality of life. And with a current vacancy rate of just 1.1%, the Perth rental market has become so tight that there are now no fewer than 112 suburbs where it's actually cheaper to buy than to rent.
The housing shortage across Metro Perth is undoubtedly a key driver in overall market performance. One recent study found that, based on a median growth rate of 5%, Perth prices won't match Sydney's for another 23 years. When you consider that incomes are relatively similar between the two cities, you have some idea of just how attractive a proposition Western Australia has become.
Just as property markets across Australia don't rise as one, they don't fall as one either. And it's interesting to note just how well-positioned WA is compared to its counterparts on the eastern coast. As interest rates rise and the property markets in other capital cities begin to falter, Perth is well-placed for continued price stability or even growth in some areas.
If you would like to speak to one of our expert property partners about your home, head over to theagency.com.au