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Perth property market standing alone as 2023 growth prospect

Posted 20/2/23

While the rest of the country stares down the barrel of large property price falls, Perth is tipped to buck the trend and increase in value in 2023.

A decline in housing stock is contributing to the Perth property market’s ability to weather the real estate value declines prevalent throughout much of the rest of Australia.

The West Australian capital is growing in stature as an investment target for eastern states buyers drawn to low vacancy rates, rising rents and the city’s relative housing affordability.

While rising interest rates are eliciting forecasts of property price falls of anywhere from 10 to 20 per cent for the national market, Perth is being tipped to buck the trend with a small but significant degree of growth.

Cath Hart, CEO of the Real Estate Institute of Western Australia (REIWA), said history showed WA’s property market is often out of cycle with the east coast.

“Some price adjustments may occur in coming months, but we are maintaining our expectation of low to moderate growth over the course of the whole year in the range of 2-5 per cent,” Ms Hart said.

“WA will not be immune to the effect of more rate rises, but rapidly rising interest rates are not the only factors that impact a market, for example, WA property prices rose between 2009 and 2010 during a period of rate increases.

“In terms of market activity, we expect that we’ll be likely to see some hesitancy in the short term as people wait and see.

“WA prices are currently being supported by ongoing demand and a shortage of housing across the board and this is likely to continue.

“WA has a strong economy, low unemployment, population growth and affordable housing and this will continue to support the market in the longer term,” Ms Hart said.

Perth Property Partners’ Director, Rob Walker, said there were now 6,993 properties for sale in Perth, compared to the corresponding week last year when there were 7,975 properties for sale.

“This clearly shows a decline in housing stock, which I believe will continue to put pressure on house prices.

“For this reason, I would expect Perth to continue to show growth over the coming 12 months as evidenced by this low level of stock and continued strong demand from interstate and local buyers.”


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Author: Craig Francis

Source: australianpropertyinvestor.com.au

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Bailey Devine Real Estate

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