Bust Over in Perth
The real estate bust in Perth is over. Leading property experts say that strong population growth combined with a tight rental market and low interest rates have created the perfect mix for a recovery. The bounce back comes after five horror years, with Perth’s median house prices currently $469,000. It was $505,000 just two years ago. REIWA President, David Airey, said that Perth was definitely moving forward but warned homeowners and investors not to expect boom prices that existed in 2006.
“It probably also signals the closing stages of the buyers’ market,” he said. “We’ve got rid of all the overpriced, long-listed properties and we’re into the start of what could be a new and more buoyant property market.” Independent property analyst Gavin Hegney agreed, saying that Perth was returning to a “genuine” market and would see growth, though not a massive boom, in home loan applications.