Steady growth makes Perth attractive for property investment
Perth bucked the national real estate trend in June with another uplift in property prices.
The CoreLogic Hedonic Home Value Index, released earlier this month, showed Perth property prices increased by 0.4% in June as the national total dipped by 0.6%.
The national result was fuelled by continued falls in the two biggest cities – Sydney and Melbourne – where property prices dropped of 1.6% and 1.1% respectively.
Recent months have shown promising growth in the Perth market, with dwelling values increasing 0.6% in May, 1.1% in April and 1.0% in March. The median property price is now $558,644.
The lack of homes on the market was also evident, with Perth’s advertised stock levels at 16.2% less than the same time last year.
Mont Property Managing Director Matthew Podesta said Perth was still in a growth cycle and one of three major cities in Australia to record a rise in property values in June.
Adelaide recorded the highest growth in property prices for the month at 1.3%, while Darwin surged by 0.9% and Perth sustained the third-highest rate of growth.
“The CoreLogic statistics speak for themselves. Despite all the speculation and hype over interest rate rises, the Perth market is still extremely strong and is holding its own,” Mr Podesta said.
“Over the past few months there has been an easing in the rate of growth but the fact remains, Perth property prices are still increasing and our city is faring far better than other bigger capitals at the moment.”
The Real Estate Institute of WA has forecast property value growth of 10% for 2022.
REIWA President Damian Collins said the Perth market had experienced solid price growth in the first six months of 2022.
“Our members have reported strong market conditions throughout Perth and across all price points over the last 12 months, and that has particularly been the case for the first half of 2022,” Mr Collins said.
“At the midway point of the year, REIWA’s 2022 calendar year forecast of 10 per cent price growth is tracking well. As we move through the winter months, it is likely some heat will come out of the market, however, not enough to impact Perth’s overall growth trajectory.”
If a real estate transaction is on your mind, then speak with our team today.