Perth house prices likely to rise from 2018: BIS
Perth’s property gloom may be nearing its end, with research group BIS Oxford Economics forecasting that home prices have bottomed out in WA’s capital city and will start to rise from 2018.
BIS modelling shows price of houses in Perth won’t change in 2017-18, but is expected to gain 3 per cent from 2018-20, the Perth Now reported.
The median house price in Perth is $540,000.
If BIS forecasts are accurate, this would mean an increase at least $15,000 over the next three years.
CoreLogic's monthly hedonic index showed Perth home values rose 1.4 percent in June, although they were still down 1.7 percent year on year.
The median dwelling price was $484,000.
BIS analyst Angie Zigomanis said the excess housing supply was approaching a peak.
Perth’s median unit price will drop one per cent over the three years to $400,000, it said.
“Our view is that Perth’s median house price has, or will shortly, bottom out,” BIS analyst Angie Zigomanis said.
“Having said that, any recovery will still be very slow and by 2020, we are only expecting a 3 per cent rise from this low, which won’t even keep up with inflation.”
