Property in Perth Australia

The property market in Perth in Western Australia is currently booming which is in direct contrast to the real estate markets in Eastern Australian states where prices are slow to stagnant.

The recent record rise in prices for property in Perth is largely due to an increase in employment opportunities in the state that are attracting migrant workers and creating a property supply deficit.  The employment opportunities also mean that domestic spending and purchasing power is increasing which equates to real estate price increases being currently sustainable.

In 2005 the median property price in Perth exceeded the AUD 300,000 threshold for the first time and proved just how strong the property market is in Western Australia.  At the same time as property prices have been increasing in Perth so the numbers of people applying for mortgages have been on the up as well.  Again these figures defy the national average because in the rest of Australia the number of home loans being applied for was down in 2005.

The economy in Perth is strong, the population is increasing and so the demand for property is increasing faster than supply and this creates a perfect environment for strong price gains.  Not only are properties attracting record levels of capital growth in Perth but rental rates are rising fast as well.  In the rental sector vacancy rates are at an all time low and landlords are enjoying healthy yields as they are able to push up monthly rent because quite simply the market can afford it.

Another factor making the Perth property market so attractive is the fact that despite the recent price increases the state remains one of the most affordable for real estate in Australia - a fact reflected in the average home loan amount requested in Perth which is consistently around AUD 30,000 less than the country wide average.

The fact that property remains more affordable in Perth than in many other areas of Australia means that local and international property investors are being attracted to the market as well, this only adds to the shortage of property because investors are purchasing and holding housing stock to enjoy the increasing rental yields.

So, in terms of the future prospects for the property market in Perth they are good - this is because the price increases being enjoyed are strong but reasonably modest meaning that they are more likely to be sustainable over the longer term than prices in markets that rocket ahead of the national average only to crash back down when a correction occurs.

For stunning scenic and skyline images of Perth and Western Australia visit Marcel de Jong’s online gallery