The Perth housing market has been the most favorable for buyers for five years, according to the Real Estate Institute of Western Australia (REIWA) and the latest Curtin University purchase / lease index.
REIWA President Damian Collins said the data from Landgate, also known as the Western Australian Land Information Authority, showed the median price of Perth housing was the most affordable in six years. REIWA also found that the median rent for houses in Perth increased by $ 10 a week in the September 2018 quarter. With this change, the recent Buy-Rent index moved further in favor of purchases.
Falling mortgage rates also contributed to the improvement in affordability. The 10-year average of mortgage rates rose from 7.3% between 1998 and 2008 to 6.2% over the last decade.
"The current median price of Perth homes is projected to increase by only $ 658,000 by 2028 to be considered more financially beneficial than renting. This bodes well for Perth buyers, as the average annual 15-year house price growth rate is 5.1%, "said Collins.
J-Han Ho, a Property Law Researcher and Associate Professor in the Faculty of Economics, Finance and Real Estate Law at Curtin University, said the results foreshadowed beautiful prospects for the housing market in Western Australia.
"The Perth housing market is very attractive when considering the cost of housing, the distance to the city center or major centers of activity, the quality and size of housing and the amenities available in all neighborhoods, "said Ho.
According to Ho, the State Government's list of strategy for international education and qualified migration of graduates, introduced in 2018, and the changes made to immigration policies by the federal government and the states in 2019 could lead to increased demand for housing.
He also said that planned investments in the mining sector and the development of retail centers could also help improve employment figures and consumer confidence in Western Australia.
The Buy-Rent Index is published quarterly to help determine the best time to buy or rent in Perth. It is based on formulated economic assumptions that identify the annual growth rate of housing prices needed to make home ownership more financially attractive than renting.
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