Rate hikes can’t stifle Perth’s gains

According to the latest data analysis from the Real Estate Institute of Western Australia, a total of 65 suburbs recorded gains during the month, leading Chairman Damian Collins to consider the PerthPerth, TAS Perth, WA market as “still well advanced”.

He said: “The Perth market typically slows down in the winter so it’s nice to see that when we drill down to the suburbs a lot are still seeing growth, especially given the three recent interest rate hikes. .”

Overall, Perth saw a 0.2% increase in its home value index, according to the latest figures from CoreLogic.

Mr Collins noted that the city “is one of the few capitals in the country to have seen continued growth in house values ​​since the Reserve Bank of Australia took the decision to raise the exchange rate”.

He added that the state’s strong economy, growing population and affordable housing put them “in a much better position to handle the increased costs of servicing a loan than our East Coast counterparts.”

“We are simultaneously experiencing a housing and labor shortage. We have low inventory levels and properties are not being built fast enough. As long as this remains a problem, competition among buyers will remain high and prices will continue to rise,” he stressed.

The suburb that stood out for the month of July was Brabham, which recorded gains of 10.1% – and led the suburb to report a new median house price of $333,750.

Alkimos took second place this month, where the average house price is now $371,250, an increase of 4.6%.

Lakelands (up 4.1% to $385,000), Banksia Grove (up 3.7% to $420,000) and North Perth (up 3% to $865,500) completed the top five for July.

According to REIWA, Gosnells, Hammond Park, Southern River, Kelmscott and Langford were also the best performers during the month.

About the Author

Grace Ormsby

Grace is a reporter for real estate and investment brands Momentum. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communications (Journalism) from Newcastle University. She is passionate about providing easy-to-digest information and relevant content for her key audiences and… Read more

Rate hikes can’t stifle Perth’s gains

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Last update: August 02, 2022

Posted: August 03, 2022