Perth fell behind only Melbourne and Sydney when it came to percentage-value property price increases over the past 25 years, according to a recent report by Aussie Home Loans and CoreLogic.
The 25 years of housing trends report showed that between 1993 and 2018 Perth witnessed average median property price increases of 6.7 per cent per annum, or $15,679 per year in dollar terms, from $96,017 to $487,992.
Property Council of Australia WA Executive Director Lino Iacomella suggests that the factors which had stimulated Perth’s property market over the years would continue moving forward – a positive sign for investors and owner-occupiers alike.
“The main reason Western Australia, and Perth in particular, has enjoyed consistent strong rates of growth in property markets is our equally strong population growth coupled with a strong local economy that continues to generate new jobs,” he said.
“The outlook is for continued high levels of population and economic growth in WA over the longer term, which means housing demand will also continue to grow.
“The reason local property markets have stagnated in recent years is our population growth has also slowed down due to the economy adjusting after the resources boom.
“These cycles happen in WA and we are already seeing signs of the expected turnaround in population growth as new jobs are created in the mining industry and other new industries pop up around the Perth metropolitan area.”
Mr Iacomella attributed the consistently strong first homebuyer share of the WA market to the nature of the state’s economy.
“When more new jobs are created we can expect more international and interstate immigration to WA, which will boost demand for rental housing at first, and then new home purchases as newcomers to WA settle in,” he said.
“This is a very good long-term scenario for investors in the WA property market.”
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