Sydney and Perth: LJ Hooker's tale of two cities
The latest white paper from real estate firm LJ Hooker compares property cycles between Sydney and Perth in order to promote a long-term view into real estate investment.
LJ Hooker’s national research manager Mathew Tiller said while the last 12 months had produced ‘red hot’ results in Sydney and challenges in Perth, both had experienced market ebbs and flows over the past 10 years.
“Today’s buyers might think it unbelievable that prices could go backward, but that was the reality in Sydney from 2004-2008, when the median dropped from $498,000 to $493,000," he said.
“But on the other side of the country, the property cycle was at a different point. WA’s market couldn’t keep up with the additional 250,000 residents chasing employment in resources and mining. Median property prices almost doubled from $230,000 to $445,000 and by as much as 30% per annum in regions such as the North West.
“Fast forward to today and it’s a tale of two cities, with Sydney’s supply unable to meet demand created by record-low interest rates and lower unemployment; while mining investment in WA has slowed and population growth declined.”
