Perth property is on the way up
2014 is set to be a great year for the Perth property market. David Airey, the President of the Real Estate Institute of WA has even gone so far as to review his estimate on what the median price of a home will be in Perth. He had previously estimated that the median price for a home in Perth would rise to $570,000 in 2014. However, David now believes this estimate needs to be revised up to $600,000.
2013 was a strong year for Perth with a 9% growth reported, pushing the median house price to $545,000. If this upward trend continues, this will give Perth the second highest median house price. Sydney remains well in front with its median house price sitting at $655,000.
With prices continuing to rise, one thing has become apparent and that is a lack of properties at the lower end of the market. David Airey said that Perth is running out of properties that sit under $400,000. This will make it hard for first home buyers and people who are on lower incomes to enter the property market as the entry point rises.
There is some talk that the market is entering a bubble but the reasons behind this growth and projected increase are not coming from inward pressure. Government projections show that 750 people a week will move to Perth in the first half of this year. Of those people, 60% of them are coming from overseas. These overseas arrivals are quick to become a part of the property market and this is pushing up both demand and price.
These confident predictions for the Perth property market coupled with, nationally, both a strong economy and a very strong banking and financial system. All this is good news for those in the property market.