The current property boom in Perth is posting a huge dividend for homeowners with prices increasing the collective wealth of owners by more than $143 billion over the past financial year.
Limnios managing director James Limnios said that figure was very conservative, based on the 850,000 Perth private dwellings identified in the 2021 Census, which would have increased in number during the past three years.
“This huge increase is laying the basis for a second locally driven property boom once interest rates start to fall as predicted during 2025,” he said.
“Over the past year, the Perth property market has benefited from eastern states investors flooding the local property market and pushing up property values, especially in lower priced suburbs.
“The lower priced suburbs such as Armadale have recorded some of the highest capital growth rate figures in Australia with an annual capital increase of nearly 40 per cent over the past year.”
Limnios predicted from 2025 onwards, local upgraders in the Perth property market will have a major impact on property values as they now have the increased equity to purchase more expensive homes.
“As a result, we should see much stronger price rises broadly across middle to upper priced properties in Perth that have not benefited from the eastern states invasion as much compared to lower priced homes over the past year,” he said.
“Perth property prices will rise even further when interest rates fall because wages in WA are the highest in Australia and falling interest rates will increase the borrowing capacity of local buyers.
By Sarah Brookes | National News by Domain.com.au
August 2, 2024
