SQM forecasts modest Perth house price rise between 4% to 7%

The Perth housing market is predicted to record a modest house price rise for 2013 and 2014, according to the latest SQM Research report.

In the SQM’s September 2012 Boom and Bust report, Perth house prices were predicted to rise between 6% to 13% for 2013 – this has now been revised to 4% to 7%.

SQM managing director and property analyst Louis Christopher says falling interest rates are assisting the market, however the mining downturn is having an impact on the rental market.

Christopher says the market is likely to slow down, due to rising rental vacancies and cautious investors in the second half of the year, but prices are unlikely to fall.

“I stress that the chances of falling prices in Perth this year or next are very remote as I strongly believe the mining downturn will be buffered by a falling Australian dollar,” says Christopher.

The median house price in Perth is currently $704,000, according to RP Data. 

The Perth Housing Boom and Bust Report will be available via the SQM Research website for $59.95.