Perth • House values in Perth have almost doubled in the last...

Perth

• House values in Perth have almost doubled in the last
decade.

• Affordability in Perth is better than the eastern capital cities,
aside from Canberra. It currently takes 32.81% of after tax
income of the median family to make home loan
repayments on the median home.

• This market has a calculated housing surplus of
approximately 3,000 dwellings.

• The data indicates that the recent growth cycle in this
market is coming to an end.

• Housing prices peaked in July 2014 at $543,500 and have
since adjusted – the median value of a Perth houses is now
$535,000.

• The median Perth unit is now valued at $465,500, which is
marginally lower than its peak of $464,500 in April 2014.

• Dollar weekly rentals have fallen from their high in June
2013 of $480 per week for houses, to $470. This further
confirms that the market is likely oversupplied.

• The unit market has suffered most with dollar weekly
rentals falling by -6.4% from their peak of $470 in August
2012. Further rental reductions should be expected until
the stock overhang is absorbed.

• The average predicted growth outcome per year over the
next 5 years is 3% for houses and 2% for units.