If you’re looking to purchase a relatively affordable house, you might be thinking of Perth. Because purchasing a house is the investment of a lifetime, you will need to spend a considerable amount of time researching houses for sale in Perth and other related aspects, such as the cost of conveyance in Perth.
Here at Soho, we are ready to help you with just that by providing all the necessary information you need–but how should you find out if property in Perth fits your budget? To answer this, let’s take a look at average house prices in Perth and the property market in Perth.
Median House Prices in Perth
The Perth property market has seen strong market conditions since the end of 2020 with no signs of its momentum slowing down. However, even with the soaring prices, Perth still remains quite affordable when compared to the rest of the capital cities in Australia.
The Real Estate Institute Of Australia (REIA) released its national Real Estate Market Facts for the December 2021 quarter, which found Perth had the most affordable median house sale price of any capital city in the country.
It noted that Perth’s median home price of $525,000 was the cheapest of any capital city in Australia and that Perth was one of the two capital cities with the median house price below $600,000 (the other being Darwin at $592,500).
When looking at unit median sale prices around the country, the REIA report found Perth was the third cheapest of the capital cities at $415,000 with Adelaide taking second spot at $412,500, and Darwin being the most affordable at $400,000.
Hence, it’s clear when observing median prices across the country that while people on the east coast are priced out of the residential sales market that is not the case with Western Australia.
What Does the Situation Look Like in 2022?
It is estimated that home prices in Western Australia will rise by 10% in 2022. This is a further growth from last year’s 14%, which suggests a significant increase this year. January 2022 recorded the highest increase on the Perth home value index of 0.6% since May of last year.
According to REIWA’s (Real Estate Institute Of Western Australia) president Mr. Collins Damien, it is anticipated that there will be an increased sales volume in 2022, which means that there will be pressure to raise the housing prices in Perth throughout 2022.
Consequently, Perth’s median house prices are also expected to increase between 10% to 15% in 2022. Mr. Collins also said that more investors are coming into the housing sector in 2022. For this reason, more rentals will be available in the market in 2022. Therefore, the strong market conditions will continue to grow in Perth.
Reasons for Perth’s Popularity Among Investors
Perth has emerged as a fan favourite among property investors, with the timing of the market and the forecasted price growth said to be behind the city’s newfound fame.
Perth’s Natural Beauty and Relaxed Vibe
Apart from being a fertile ground for growing investment opportunities, Perth is often described as a big, friendly country town with some of the best places to live in Australia. Large enough to attract sporting, arts, and cultural events that other state capitals enjoy, there’s no doubt that the pace of life is refreshingly relaxed. You only have to look at their peak hour traffic to notice a difference.
The climate is warm with mild winters and the extreme summer heat is pleasantly cooled down most days by the ‘Fremantle doctor,’ which is the name locals give to the cooling afternoon sea breezes.
The beaches are stunning, attracting boaties and surfers from around the world. If water sports is not your thing, then Perth has more than its fair share of parks and gardens.
Perth’s Economy Is Set to Turn the Corner
Although no one has a crystal ball, there are reports that the Western Australian economy is set to grow at a modest pace, driven by the export sector. While the mining and resource industries are still important to the WA economy, other sectors such as tourism and healthcare are set to expand. Naturally, there will be a rise in demand for houses and rental properties.
Final Takeaway
Perth not only ranks on the top when it comes to affordable housing with a median house price of $525,000, but the property rates are expected to rise significantly in the future, making it a perfect place to purchase a property. Whether you’re thinking of investing in a property or settling down, Perth’s growing economy, relaxed lifestyle, and natural beauty will certainly make your investment worthwhile.
