Perth’s property market cools after several years of major growth.
PERTH, Western Australia – Perth house prices have slightly cooled in the last economic quarter, according to new data from the ABS, indicating that that Perth prices will fall from 10-14% to an annual pace of 6-8% in the next year or two.
The data reveals that Perth home prices have entered a cooler period in the house price cycle, after several years of explosive growth.
Over the last 20-years, Perth has seen an overall average of 9% P/A property growth.
According to Westpac economist, Matthew Hassan, “all price measures are pointing to a clear moderation in momentum in 2014, although most suggest this is a step down from a 10-14% annualised pace to a 6-8% pace”.
“To date, readings for the second half of the year point to a continuation of this pace rather than a further slowdown,” Hassan said in response to the new data.
The ABS index shows that Perth prices fell very slightly by -.1% in the September 2014 quarter.
Other data in November, from the Real Estate Institute of Western Australia, shows Perth’s median house price lifted just under 1% in the September quarter to $548,000.
Perth’s median house price has been hovering around the $550,000 mark for most of 2014, with jumps in prices in a number of established and new suburbs, other areas saw slower growth. (Map of Perth House Prices)
Most projections for the Perth housing market indicates a period of lower growth overall in the next 18-months, but that was likely to pick up again as population growth continued and housing supply remained limited across the city.
The medium to long-term trend indicates Perth will continue to face sever supply issues and a lack of housing options for new arrivals and younger buyers.
The long-term investment opportunity for Perth property remains strong, with the ABS and Housing Industry Association saying Perth faces a shortfall of 100,000 dwellings by the end of the decade.
There are also major concerns around a scarcity of new land and a lack of villa’s and other property needed to keep up with medium term demand.
Highest growth suburbs in Perth, according to REIWA: