Leschenault ranked 2nd for value growth nationally
A landmark, joint study by Aussie Home Loans and CoreLogic has revealed Perth house values have risen at an annualised rate of 6.7 per cent or $15,700 since 1993.
At the same rate of growth over the next 25 years, Perth’s median house value could rise from the current $488,000 to reach $2,480,000 in 2043.
The Aussie/CoreLogic ’25 years of housing trends’ report found the typical Perth apartment has risen at an annualised rate of 6 per cent or $12,300 over the last 25 years, reaching their current median value of $400,700. In 2043, the median unit value in Perth could be $1,702,000.
Chief Executive Officer of Aussie, Mr James Symond, said “This report’s a timely reminder that Perth was one of the hottest markets in Australia between 2003 and 2013. It shows that over the long term, residential property in Perth has been a strong performer, due largely to the surge in housing demand associated with the mining boom.
“Despite property values tracking lower since 2014, Perth has the third highest growth in house and unit values over the last quarter-century. It has 12 suburbs in the national top 100 list for value growth, and the South West also has a strong presence taking out three spots in the national top 10, with Leschenault at number two, Meadow Springs at number six followed by Glen Iris at number seven.”
Mr Symond added “With average mortgage rates currently close to their record low levels of the 1960’s, loan serviceability levels have actually improved in recent years, helped by the trend towards lower home prices that has been evident since 2014.
“This is reflected in our report, which shows first home buyers are more active in WA than any other state or territory at 24.9 per cent, down only marginally from 1993’s 24.3 per cent. This is well above the national average of 17.4 per cent.”
Housing affordability remains a concern, with the percentage of annual household income in Perth required to service a loan – at an 80 per cent loan to value ratio – rising from 22.5 per cent to 31.2 per cent over the last 17 years.
Leda was the star performer for house value growth over the last 25 years, increasing from $24,100 to $312,000, followed by Currambine which grew from $44,500 to $535,000.
Detached houses have been the primary drivers of the market, with the Top 20 listing featuring only one suburb with apartments, West Leederville.
“If the changing face of residential property and staggering growth of technology we’ve seen over the last 25 years continues, it’s likely the next 25 years will produce even greater change,” concluded Mr Symond.
To view the full Aussie/CoreLogic 25 years of housing trends report, visit www.aussie.com.au/25years or contact an Aussie Broker for a free copy.