AUSTRALIA (Commonwealth Union)_ While the clock is ticking on the property markets of Sydney, Melbourne, and Brisbane, Perth has been designated as the only major city in Australia to be designated as a ‘growing market.’
Perth is the sole capital city market on an increasing trajectory for detached houses and multi-units, according to the Herron Todd White (HTW) October 2022 National Property Clock tracking of the nation’s key housing markets. All of Western Australia’s major regional markets are likewise categorised as either a ‘growing market’ or a ‘market nearing its peak’.
REIWA data released on Tuesday (22 November) emphasised the area market’s strength and affordability. Busselton’s median house price jumped 5.4 percent to $648,000 during the quarter, while Bunbury’s increased 2.5 percent to $410,000. Busselton was likewise the top performance year after year. Its median house price climbed by 22.3 percent year on year. Port Hedland came in second for price growth, with the median jumping 12.9% to $460,000.
According to Toby Adams, Executive Manager Research, Urban Development Institute of Australia WA (UDIA WA), Perth’s status as a rising market is largely due to significantly more modest pricing rises observed during the COVID-era than were seen along the eastern seaboard. “While price in these overheated east coast cities is already beginning to decline, pricing in Perth and across most regional markets has stayed firm and is still climbing mildly in certain sub-markets.”
Affordability is definitely one of the charms of the Perth market to interstate investors who earn the same earnings as West Australians but face property costs that can be more than double that of a comparable Perth house. According to CoreLogic’s latest pricing statistics, Sydney’s median new house price grew $373,500 in the year to August (to $1.25m), followed by Canberra’s growing $140,000 (to $915,000) and Adelaide’s increasing $110,000 (to $645,000), while Perth’s increased only $10,000 to $525,000.
The enormous gap in house supply available for less than $600,000 highlights Perth’s investment attraction. While more than half (56%) of Perth properties fall below that benchmark price, only 11% of Sydney residences can be purchased on that budget, while Canberra (22%), Melbourne (25%), and Brisbane (38%), all confirm Perth’s relative affordability.
The disparity between the Perth and Sydney housing markets is much more pronounced. Just over half of Perth homes are advertised for less than $600,000, compared to 1.8 percent in the harbour city. Borrowers in Western Australia are relatively quiet, whether they are purchasing their first home or investing in a property portfolio. Monthly owner-occupier lending volumes for established market properties are down 21% year on year (YoY) but remain 8% higher than the decade average.
