Housing prices in Perth, Australia, have been a topic of discussion for both locals and potential investors. With a cost of living that ranks the city as the third most expensive in Oceania, it’s crucial to investigate whether houses in Perth are considered expensive.
The median house price in Perth is currently $575,000 as of November 2023, according to REIWA. This does not make it the most affordable capital city in Australia, as Darwin, for instance, has a lower median house price at $565,000.
Still Perth remains an affordable option compared to other capital cities.
In this article, we will explore the various factors that influence housing prices in Perth, such as the demand-supply balance, and the impact of economic indicators on the real estate market.
We will also delve into how Perth’s property market compares to other major Australian cities and what potential buyers can expect in terms of future trends and investment opportunities.
Are Houses Expensive in Perth?
Current Housing Market Trends
The housing market in Perth is currently quite active, with property prices rising steadily over the past year. The Perth median house price reached a new high of $575,000 in October, a 0.9% increase from September and 6.5% from October 2022.
However, compared to other cities in Australia, Perth seems to be more affordable in terms of property prices.
| City | Median House Price |
| Sydney | $1,121,196 |
| Melbourne | $778,541 |
| Brisbane | $770,575 |
| Adelaide | $700,024 |
| Perth | $575,000 |
| Hobart | $662,166 |
| Darwin | $497,315 |
| Canberra | $842,722 |
Factors Affecting Housing Prices
Several factors contribute to the housing prices in Perth. Some of these include:
- Supply and demand balance: The demand for housing in Perth is influenced by factors such as population growth, job opportunities, and buyer sentiment. The supply of new housing, on the other hand, depends on building activity, land availability, and government policies.
- Economic performance: The local and national economy plays a crucial role in influencing housing prices. Stronger economic growth and positive employment prospects can increase the demand for housing, leading to higher prices. Conversely, weaker economic conditions may reduce demand, potentially resulting in lower prices.
- Interest rates: Lower interest rates can make housing more affordable for buyers by reducing mortgage repayments. This can increase demand for housing, potentially leading to higher prices. On the other hand, higher interest rates can have the opposite effect.
- Government policies and incentives: Initiatives such as the First Home Owner Grant or other government subsidies can affect housing prices by making it more affordable for first-time buyers or stimulating building activity.
With Perth’s growth and more affordable housing compared to other major cities, potential investors are prompted to consider if is buying a house in Perth a good investment. Potential buyers need to understand these factors and monitor trends to make informed decisions about investing in the Perth housing market.
For insights into the financial requirements of residing in this city, one should explore how much does it cost to live comfortably in Perth?
What You Need to Know About Perth Housing Market
Perth’s housing market has seen growth, with the median house price reported by REIWA at $575,000. Timing the market can be challenging, especially with the current 30-year low in property listings.
For those looking to enter the market, it’s beneficial to review the houses for sale in Perth to better understand the current offerings and prices.
5 Affordable Suburbs in Perth
For those interested in the more affordable end of the market, Perth has several suburbs where property values are more accessible:
- Merriwa: Located in the Wanneroo LGA in Perth’s far north, this suburb is established with a variety of amenities and has seen a median house price increase of 14.6% over the past year.
- Midland: Situated in the north-east of Greater Perth, Midland serves as a hub for transport and services and has experienced a more than 20% increase in rents over 12 months.
- Nollamara: Within the City of Stirling, Nollamara offers houses in the $300,000s and $400,000s, with a very low vacancy rate of 0.2%, indicating high demand.
- Parmelia: Part of the City of Kwinana, known for having some of the most affordable areas, Parmelia has seen a median house price increase of 16.7% in the past year.
- Warnbro: A suburb with diverse attractions such as beaches and regional parks, Warnbro also has a rising median price, almost 17% up from the previous year.
These suburbs offer a range of price points and amenities, making them attractive for both investors and first-time homebuyers.
Best Time to Buy
As with any real estate market, the best time to buy in Perth is when there is less competition and more property options available. Unfortunately, listings are currently at the lowest level in 30 years, making it more challenging to find the perfect property.
Nonetheless, keep an eye on market trends and seasonal fluctuations, as there may be opportunities for buyers when the market cools down or more properties are listed.
Possibility of Future Price Changes
While Perth’s median house value has increased, there is no guarantee that the upward trend will persist indefinitely.
According to expert sources, unit prices declined over the financial year by 3.2%. It is essential to conduct thorough research on the Perth property market and obtain expert advice to make informed decisions about property investments.
To navigate the Perth housing market successfully, one must stay informed about current market conditions and possible future fluctuations. By timing a purchase wisely and considering the potential for price changes, buyers and investors can seize valuable opportunities in this dynamic market.
Suggested reading: To get a broader perspective on what it takes to buy a home in this city, check out our in-depth guide on buying a house in Perth.
FAQ on Are Houses Expensive in Perth Australia
Is it worth buying property in Perth?
Perth is currently highlighted as one of the top locations for residential investors in Australia, offering superior yields compared to other major cities.
Is Perth an affordable place to live?
Perth is praised for its vibrancy, creativity, and diversity, offering an affordable lifestyle that’s well connected to Asia, sharing a timezone with Singapore, and providing a great environment for international students.
Where is the cheapest house in Perth?
Optimum Lawyers points out Armadale as the most affordable suburb in Perth for buying a house, with a median price of $295,000, appealing to first-time buyers and investors.
What are the disadvantages of living in Perth?
The F discusses the isolation of Perth as a significant disadvantage. Although it’s a city with many benefits, its distance from other major cities can be challenging and sometimes frustrating for residents.
