According to long-term data, the Perth market holds the number two spot compared to other capital cities.
Property owners in the Perth market have achieved the second-highest capital growth rate for any capital city in Australia over a 15-year period.
CoreLogic figures reveal that over the 15-year period ending 2015, the median house price in Perth increased by an average of 8.3 per cent – second only to Melbourne at 8.6 per cent during this period.
Average annual median house price increases over the past 15 years:
- Melbourne: 8.6 per cent
- Perth: 8.3 per cent
- Brisbane: 8.1 per cent
- Canberra: 7.7 per cent
- Adelaide: 7.5 per cent
- Hobart: 7.4 per cent
- Sydney: 7.1 per cent
- Darwin: 7 per cent
These figures highlight the fact that now is a great time to buy a property in Perth, while property prices are still affordable.
The affordability of Perth house prices is underlined by the fact that the median house price in Perth is just 2.9 per cent higher than its previous peak, compared with 42 per cent for Sydney and 16.5 per cent for Melbourne.
Over the long term, astute property buyers can achieve one of the highest returns in terms of capital growth if they buy a property in Perth.
When you consider that the annual inflation rate averaged around 3 per cent over the past 15 years, anyone who has held a Perth property over this period has achieved a strong profit in real terms as a result of the average 8.3 per cent growth in house prices per annum over this period.
Too often property buyers make their decision based on current market sentiment without considering the long-term fundamentals of the property market.
Negative publicity about the Perth property market has dissuaded many people from buying a property, yet now is actually the time they should be purchasing property.
The average vendor discount in Perth is now 6.7 per cent off the original listing price, which means buyers might have not a great opportunity to secure a bargain.
If they buy now and hold the property over the long term, history shows that Perth buyers will achieve a level of personal wealth creation through property, which is one of the highest in Australia.
The current downturn in the Perth property market is only temporary – as has been the case in the past – and it is only a question of time before property prices rebound.
Limnios Property Group has specialised in the inner-city Perth property market for over 40 years. During this period, Limnios Property Group has emerged as one of the most progressive and innovative real estate companies assisting both developers and property investors to achieve their goals through highly professional advice backed by an unparalleled depth of experience in the inner-city market.