Perth prices to remain steady in 2015: Domain Group's Andrew Wilson

Perth prices to remain steady in 2015: Domain Group's Andrew Wilson
Jonathan ChancellorDecember 7, 2020

The Perth housing market recorded modest price growth over 2014 with affordability barriers and declining economic activity impacting the market, according to the Domain Group's senior economist, Andrew Wilson.

Perth’s median house price increased by just 0.6% over 2014 - well down on the 9.6% of 2013.

Source: Domain Group

"Perth was the early starter in the general capital city housing market revival that commenced with sharp cuts to interest rates in 2012-13," Wilson said.

"The local market is now stabilising following exceptional prices growth over 2012 and 2013."

Rising unemployment and lower economic growth, driven primarily by the decline in the resources sector, are impacting housing market activity, he said.

"Despite this, the local Perth economy remains relatively well placed compared to most other state economies."

Source: Domain Group

Wilson tipped price growth over 2015 to remain steady in Perth helped by the proportion of first home buyers, which exceeds all other capital city markets, and the prospect of rising activity in the prestige market.

"Lower interest rates will also provide a stimulus to aspirational buyers in middle price ranges," he said.

"The recent solid performances in Perth’s higher-priced city suburban areas will continue with moderate buyer activity from the mid and budget range regions of the north, south, south-west and east."

Perth median house prices are forecast to rise between 1 and 3% over 2015.

Source: Domain Group

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.
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