Property prices in Perth are forecast to rise in 2013 despite a decline across the country.
Across Australia home values have fallen for the second year in a row – the first time this has happened in 16 years. Capital city dwelling values fell 0.4 per cent nationally in 2012, with the decline coming on the back of a 3.8 per cent fall in 2011.
However in the Western Australian capital, dwelling values increased by 1.7 per cent in the three months to December. House prices are up 0.6% for the year to a median price of $483,000. The median house yield is 4.5%.
A combination of factors has contributed to Perth outperforming the other States, most notably the benefits of the mining and resources boom.
Senior Aussie Broker Paul Filing, owner of five stores in Perth, says that the Perth property market is heavily influenced by Perth’s rapid growth in population and a relative shortage of property. This is manifested by a highly expensive rental market.
%u201CWe are constantly hearing anecdotal evidence of rental properties attracting even higher rents as competing prospective tenants bid up the rent they are prepared to pay, particularly for family homes.%u201D
%u201CIn many areas in Perth rents are similar to 95% LVR mortgage repayments for equivalent properties%u201D says Filing.
%u201CDuring the last quarter of 2012 there was heavier demand for finance particularly among first home buyers in the sub-$500,000 price range. Although, we are reading stories in the media of the mining boom slowing it is important to recognise that a slowdown in one sector (let%u2019s say iron ore) may not be consistent with the trend in other sectors like gas and coal.%u201D