PHOTO: House prices in this city are expected to jump this year. Photo: Duet Property Group
Perth house prices are on track to rise faster than any other Australian capital city in 2021, thanks to a strong economy, a tight rental market and the state’s response to COVID-19, according to property experts.
House price growth between 6 and 10 per cent was likely, Real Estate Institute of WA president Damian Collins said, with 2021 expected to be the city’s best performing market in about seven years.
“We have an undersupply of properties on the market and the oversupply of what we had in the last year has been taken up and demand is certainly outstripping supply,” he said.
“We are certainly very affordable. Our income is higher than other locations, interest rates are low and the WA economy is strong, particularly our mining sector, which drives a lot of things.”
Economists also expect strong growth, with ANZ tipping a 12 per cent rise in Perth housing prices this year, compared to 8.8 per cent in Sydney, 9.5 per cent in Brisbane and 7.8 per cent in Melbourne.
AMP Capital chief economist Shane Oliver recently forecast Sydney and Melbourne to rise about 2 per cent on average in 2021 and more for suburban houses, while Perth and Brisbane could rise up to 10 per cent.
Falling house prices in the past five years meant the Perth property market had more room to grow, according to JLL WA strategic research manager Ronak Bhimjiani.
READ MORE VIA DOMAIN