In Brief: Perth house prices to remain flat

HOUSE prices in Perth are expected to remain flat in the coming financial year, with marginal growth in the following two years, according to a report from research group BIS Shrapnel. The report shows total lending for owner occupation in WA fell 12 per cent in 2006-07, and 2 per cent in the nine months to March, compared with the previous year. Perth’s median house price is expected to be $460,000 for the June quarter, up 2 per cent for the year, and up 178 per cent since June 2001. This would be the same level achieved in December 2006, when price growth peaked. While prices are expected to remain flat over the next few years, strong wages growth is expected to produce a six per cent increase in Perth’s median house price in 2010-11. In other states, higher rents and improved credit conditions are expected to deliver a pick-up in price growth from 2009-10, although interest rates are likely to limit price growth in the meantime.