Residential Property Market

Residential Property Market

Perth Overview

House and unit price growth and sales activity was strongest leading up to the Global Financial Crisis (GFC). House prices increased from $160,000 in 2000 to $462,500 in 2007 (27% p.a) and apartment prices increased from $108,000 in 2000 to $385,000 in 2007 (37% p.a).

While Perth apartment sales have moderated since the 2013 post resources boom period, the median unit price has held up relatively well at $405,000 over 2016.

Perth is emerging from a cyclical trough and the underlying fundamentals of a resilient economy, pipeline of infrastructure investment and the next wave of resource sector investment is expected to bolster  the residential market over the medium to longer term.

Numerous factors will drive a strong increase in demand for apartments in Perth. Key drivers are summarised as follows:
Affordability: Perth has seen rapid growth in house prices over the last decade. Apartments offer a relatively affordable market entry point alternative to houses. First home buyers can enter a suburb which may otherwise be beyond their budget and downsizers can remain close to their existing residence and trade down.

Shifting Demographics: Perth’s population has been growing at the fastest rate of any Australian capital city. An aging population, lower fertility rates, declining, household sizes and prevalence of young overseas migrants are leading to an increase in demand for smaller dwellings.

Low Land Availability: Few opportunities for new, single lot land subdivision, particularly in inner city areas are increasing market acceptance of higher density residential product. Apartment living offers proximity to a wide range of amenities.

Government Policy: The Metropolitan Redevelopment Authority, City of Perth and WA Planning Commission all have central policy objectives striving for a greater variety in housing options and higher density development.

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