The Perth property market is very different than it was a year ago. In the last year, home buyers grappled with the rising cost of home ownership—a cost that at times rose as much as $1200 per day—and auctions minted millions of dollars by charging exorbitant reserve rates.
As the market has become less volatile, depending on the rating of Perth suburbs, interest rates for real estate in Perth have both risen and fallen. If you’re looking to sell, should you wait for the prices to rise in your favour, or cut your losses now?
Recommended Reading: What Will Predicted House Prices in 2030 Perth Look Like?
The Transition Phase
The current drop in the price for houses in Australia is what is termed by many experts as a transition phase, and there isn’t a specific time when things are expected to improve. It could take about three to six months for things to normalise.
The transition phase affects the whole property market. Property searches fell significantly in April in all regions except the Northern Territory, and Victoria and BC recorded a major decline in property prices.
What Are the Main Factors Affecting the Property Market?
Some of the main factors that determine Perth property prices include:
- Neighbourhood
- Available social amenities
- Interest rates
- Space
- Security
- Proximity to a major city
Other Aspects Bound to Change
The transition phase is likely to cause other changes in the market before things stabilise.
Increasing Rent Prices
Rental rates are likely to rise for the remainder of 2022, given increased demand. The increase is likely to be worsened by the complete reopening of borders as many countries continue to ease travel restrictions. Moreover, rent is likely to go up around educational facilities and surrounding CBDs.
Endless Upgrades
It’s likely that the Perth property market will be dominated by property upgrades of various types, including:
- Tenants are preferring better rentals—High-quality properties are not in short supply in Australia and tenants are likely to favour them over living in poorly constructed or smaller apartments. Also, those who have accumulated savings are likely to take advantage of the incentives offered to first-time home buyers.
- Homeowners moving into bigger homes—High-interest rates are encouraging existing homeowners to move to larger houses.
- Homeowners looking for a change in scenery—As existing homeowners and new homeowners look forward to upgrading, there will likely be increased emphasis on looking for homes in picturesque locations such as near water or outdoor space.
Should You Buy Now or Wait?
There will always be active buyers and sellers regardless of the state of the property market, but timing can be important. If you’re short on cash, waiting may do more harm than good because you’ll end up borrowing less.
However, those with some money to spare will be less affected by interest rates, so won’t be as affected if they decide to buy later. And when you are ready to buy, you can check out our round up of cheap houses for sale in Perth to get you started.
Overall, a decrease in property prices isn’t necessarily a bad thing. If you’ve been considering upgrading to a higher-end home or more exclusive neighbourhood, now might be the time.
FAQ about ‘Perth Property Prices Dropping’
Are house prices in Perth going to drop?
There is no consensus on whether house prices in Perth will drop in 2023. Some experts predict that prices will fall by 13.1%, while others believe that they will rise by 1.2%. The actual outcome will likely depend on a number of factors, such as the performance of the Western Australian economy, interest rates, and migration trends.
Will Perth house prices rise in 2023?
It is possible that Perth house prices will rise in 2023. However, the rate of growth is likely to be modest, with some experts predicting a rise of 2%. This is due to a number of factors, including the strong economy in Western Australia, low interest rates, and positive migration trends.
Is real estate dropping in Perth?
Real estate is not dropping in Perth at the moment. In fact, house prices have been rising steadily over the past few years. However, there are some concerns that prices could start to fall in 2023, due to a number of factors, such as the rising cost of living and the potential for a recession.
How much will Perth houses cost in 2024?
The median house price in Perth is expected to reach between $704,000 and $718,000 in 2024. This is a modest increase from the current median price of $555,000.
How much will Perth property prices be in 2030?
It is difficult to predict how much Perth property prices will be in 2030. However, some experts believe that they could reach as high as $1 million. This is based on the assumption that the Western Australian economy will continue to grow and that interest rates will remain low.
