Are you one of the hopeful home buyers in Perth, patiently waiting for property prices to drop after interest rate increases?
While it’s true that many parts of Australia have seen a housing downturn, Perth’s property market has been bucking the trend. Surprisingly resilient, it has shown consistent growth, and it doesn’t seem like that will change anytime soon.
Before you keep holding off on your dream home purchase, let’s take a closer look at what’s happening in the Perth property market for the 2023-24 financial year.
There’s more to consider beyond interest rates, and understanding the full picture could help you make a more informed decision about buying a Perth home.
Perth Housing Market Trends and Predictions for 2023
If you’ve been keeping up with property market trends, you might have heard that while the rest of Australia is facing a housing downturn, the Perth property market has shown remarkable resilience.
“Resilience has been the theme for 2023 so far, with house prices continuing to grow in the face of 12 interest rate rises,” says REIWA CEO Cath Hart.
Since the end of 2022, Perth’s annual median house price has increased by 1.5 per cent, reaching $552,000. According to CoreLogic’s July 2023 statistics, the average value of a Perth home surged by 2.4 per cent just between March and May 2023.
Despite the rising interest rates, REIWA’s latest update suggests that Perth house prices are on track to achieve low to moderate growth in 2023. Properties are selling quickly, with impressive numbers at home opens, and many receiving multiple offers.
A recent analysis by UBS, relying on APRA data, also discovered that mortgage lending continues to rise, while business lending is growing at an even faster pace. This indicates sustained confidence in the market and a positive trajectory for the Perth property sector in the coming years.
Overall, the outlook for the Perth housing market in 2023 is one of relative steadiness and continued growth.
When Should You Buy?
If you’re wondering when the right time to buy in Perth is, the answer might surprise you.
Despite the current trends, Perth remains one of the most affordable capital cities in Australia, with median new land prices less than a third of Sydney’s.
Additionally, the rental market is posing significant challenges for renters, with a near-record low vacancy rate of 0.7%. This combination creates an attractive scenario for both prospective home buyers aiming to escape the rental market and investors seeking the highest rental yields in the country.
While property prices are not showing signs of coming down any time soon, the tight rental market in Perth is expected to persist throughout 2023. This is largely driven by subdued investor activity, supply blockages for new housing, and lower land values compared to east coast markets.
If you are serious about entering the property market, now may be a good time to make a move.
Key Takeaways
- The Perth property market has shown remarkable resilience despite interest rate increases, with consistent growth and positive predictions for the 2023-24 financial year.
- Perth remains one of the most affordable capital cities in Australia, making it an attractive option for prospective home buyers and investors.
- The tight rental market in Perth, with a near-record low vacancy rate, offers an opportunity for renters to consider buying and for investors to secure high rental yields.
- Property prices are not expected to come down in the near future.
Considering the market’s resilience, continued growth predictions, and attractive rental market conditions, waiting for lower home prices in Perth might not be the best approach. Instead, this might be an opportune moment to take action and secure a property.
Perth remains one of the most affordable capital cities in Australia, making it an enticing prospect for both prospective home buyers and investors. With rental yields on the rise and the property market showing stability, acting now could lead to a smart investment and a chance to step into the Perth property market.
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