Housing Shortage Drives Up Perth Prices
There is hot competition for properties in Perth, with rising house prices bolstering the property market of Western Australia’s capital city.
In the December quarter, the median price of a house in Perth increased 3.3%. For renters, there was an average rent increase of 4.4% in the three months to February 2013.
Despite the signs of promise for buyers, there is not much certainty of where house prices in WA are heading. It is difficult to know whether the recent gains are sustainable and if the time is right for purchasing property.
The Perth industry figures suggest that if a buyer has the financial means to buy and can keep on top of the repayment of their debt, buying could be a good move. However, the danger for buyers is falling victim to the appeal of entering the market ‘at any cost’.
Managing Director of Momentum Wealth, Damian Collins, warned “We’re in buoyant, not boom times.” Collins explained that Perth’s residential property market was being fuelled by a lack of homes in the market that he did not foresee ending any time soon.