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Following the Reserve Bank of Australia (RBA)’s 2 September 2014 decision to leave the cash rate unchanged at 2.5%, the Perth Metropolitan area has continued to show increased buyer activity in the lower end of the market and steady growth in the median house price. In a statement released by Glen Stevens, Governor of the RBA, he stated “Growth in the global economy is continuing at a moderate pace. China’s growth remains generally in line with policymakers’ objectives, with weakening property markets a challenge in the near term. Commodity prices in historical terms remain high, but some of those important to Australia have declined this year.”
Governor Stevens continued “In Australia, the most recent survey data indicate gradually improving business conditions and some recovery in household sentiment after a weaker period around mid year, suggesting moderate growth in the economy is occurring.”
The increase in demand for residential homes in the $400,000 to $800,000 price bracket is attributed to a combination of factors, the most significant being the consistent population growth of the Perth region and an increase in private investors who are seeing the low interest rates and steadily increasing residential rents as a potentially profitably opportunity.
Kris Aird, director of Designer Homes Perth said, “The latest data for August shows that the overall median rent has held steady at $450 per week, with the vacancy rate sitting at just 4%. The city grew by over 67,500 people over the last year, and it’s the stability of this on-going growth that is making many people see residential property in Perth as a good long-term investment.”
Apart from the steady growth in the medium market, there has also been ongoing growth in the top end of the market. The Australian Bureau of Statistics recently revealed that Perth is now home to four of Australia’s five most advantaged suburbs, as people arrive to share in Western Australia’s wealth boom. Perth’s suburbs of Nedlands, Cottesloe, Peppermint Grove and Cambridge, now make four of Australia’s five top areas, and we expect the market for new custom built and designer homes to increase over the coming years.”
For more information, see the Designer Homes Perth
Release ID: 65154