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House Prices Perth: Market Update – October 2013

The house prices Perth offers make for a great property market

Conditions across the investment property market in Australia continue to favour investors as the impact of low interest rates, rising confidence and generally solid economic performances fuel a now well-established recovery in the house prices Perth offers.

The Australia house prices rose by 2.5% over the July quarter, up 5.6% over the year. The lowest interest rates in 60 years is a key driver of current conditions and the Reserve Bank elected to keep interest rates on hold in the property investment market this month, following a 0.25% cut in September.

The low interest rates in the Western Australia property market are fuelling first home buyer activity, particularly in the $400,000 to $600,000 house price ranges and the subsequent shortage of stock is turning more and more investors towards building in preference over buying in the investment property market.

In the Western Australia property market, the housing market remains one of the strongest in the country driven by continued population growth and an underlying accommodation shortage. The July unemployment rate in WA was the lowest of all the major capitals and eastern states jobseekers continue to make the move west, increasing demand for accommodation and in turn the Perth house prices are rising.

Some industry experts say the Western Australia property market has bounced back to pre-GFC house prices but at Investor Assist, we prefer to exercise a little more caution when it comes to the investment property market.

There is no doubt increasing investor confidence, high rental yields, low vacancy rates and historically low interest rates is boosting the property investment market but it is important to keep a close eye on national economic activity which remains in a neutral zone with no clear signs of improvement or deterioration. Retail sales are flat and the Australian dollar will continue to put pressure on interest rates so it is important not to look at the investment property market in isolation when it comes to Australia house prices.

This being said, the spring selling season always brings plenty of buyers and investors out in force so we are expecting plenty of investment activity in the property investment market as the weather starts to warm up. Outlined below are a few key stats and top trends from the July quarter.

Perth Investment Statistics
(based on Investor Assist sales data)
 
Perth median house price Just over $500,000
Perth median rent price $470 per week
Perth metro rental vacancy rate 3.1%
Investor Assist median house price Around $450,000
Suburbs to watch Alkimos, Baldivis, Harrisdale
Top trending investment topics Where to buy in Perth?
Self-Managed Super funds (SMSFs)
Sub-dividing
Top trending house design  Investor's Collection - Port Angeles (3 bedroom, 2 bathroom with garage at rear)
Top trending colour schemes  Internal colour palette - Oak Leaf (Beiges, creams and earthy colours) 
Most popular Info Event topic Introduction to Property Investment

If you are thinking about property investment and would like more information about the current Western Australia property market and your options, come along to an information event or chat to one of our Property Specialists. It won’t cost you a thing but it’s well worth the effort.

Source: Domain Housing Market Report Update, Your Investment Property Magazine

Would you like to learn more about the Western Australian property market? Contact our team of Property Investment Specialists or book an appointment for more information.

DISCLAIMER: This information is of a general nature only and does not constitute professional advice. We strongly recommend that you seek your own professional advice in relation to your particular circumstance. Investor Assist Pty Ltd Builders Registration No. 13818.

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