Perth property growth - staggering 412 percent from 1993... 05/11/2018
Perth fell behind only Melbourne and Sydney when it came to percentage-value property price increases over the past 25 years, according to a recent report by Aussie Home Loans and CoreLogic.
While much of the housing affordability rhetoric nationally centres around the large cities in the eastern states, the 25 years of housing trends report showed that between 1993 and 2018 Perth witnessed average median property price increases of 6.7 per cent per annum, or $15,679 per year in dollar terms, from $96,017 to $487,992.
If the property market were to grow at the same rate for the next 25 years the median house price in Perth would be $2.48 million in 2043.
In percentage growth terms, Perth came in third among the capitals nationally over the past 25 years, though median housing in the west was still far more affordable than on the east coast.
The Melbourne median price grew 8.1 per cent per annum from 1993 to 2018 to $824,955, and Sydney recorded growth of 7.6 per cent per annum over the same period to a median value of $1.03 million this year.
2 Butcher Rd, Roleystone
Overall, the report maps the astonishing quarter-century growth of the national property market, showing median house price growth of $460,000, or 412 per cent, from $111,500 in 1993 to $571,400 in 2018.
The investor market apparently noticed these trends – in 1993, 20.3 per cent of mortgage demand nationally was for investment purposes. This came in at 42.8 per cent in 2018. In Western Australia it more than doubled from 15.3 per cent in 1993 to 32.6 per cent this year.
Property Council of Australia WA Executive Director Lino Iacomella told West Real Estate while future growth was impossible to predict, the factors which had stimulated Perth’s property market over the years would continue moving forward – a positive sign for investors and owner-occupiers alike.
“The main reason Western Australia, and Perth in particular, has enjoyed consistent strong rates of growth in property markets is our equally strong population growth coupled with a strong local economy that continues to generate new jobs,” he said.
Source: The West Australian property report