12/06/2018 - 12:33

Perth house prices among nation's top since '93

12/06/2018 - 12:33

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Perth house prices have increased 6.7 per cent per annum over the past 25 years, behind only Melbourne and Sydney, with southern suburb Leda among the country’s top performing in that time, according to a study released today.

Perth house prices among nation's top since '93
Perth’s median house price has increased about $15,700 per year since 1993. Photo: Attila Csaszar

Perth house prices have increased 6.7 per cent per annum over the past 25 years, behind only Melbourne and Sydney, with southern suburb Leda among the country’s top performing in that time, according to a study released today.

The study by Aussie Home Loans and CoreLogic shows Perth’s median house price has increased about $15,700 per year since 1993, to $488,000.

That compares with annual increases of 7.6 per cent in Sydney, 8.1 per cent in Melbourne and the national average of 6.8 per cent.

Leda recorded annual price growth of 10.8 per cent, increasing from $24,100 to $312,000.

Northern suburb Currambine grew by 10.5 per cent per annum, from $44,500 to $535,000.

Other top performing suburbs included Port Kennedy (10.5 per cent), Brookdale (10.3 per cent) and Clarkson (10.1 per cent).

The report forecasts that Perth’s median house price could rise to $2.4 million in 2043, if the current growth rate continues.

Perth apartments have also risen at an annualised rate of 6 per cent to reach a current median value of $400,700.

Aussie chief executive James Symond said the report highlighted the strength of the Perth property market from 2003 through until 2013.

“It shows that, over the long term, residential property in Perth has been a strong performer, due largely to the surge in housing demand associated with the mining boom,” he said

“Despite property values tracking lower since 2014, Perth has the third highest growth in house and unit values over the last quarter century.

“It has 12 suburbs in the national top 100 list for value growth, and the South West also has a strong presence taking out three spots in the national top 10, with Leschenault at number two, Meadow Springs at number six followed by Glen Iris at number seven.”

Mr Symonds said loan serviceability levels had improved in recent years, helped by the trend towards lower house prices since 2014.

“This is reflected in our report, which shows first home buyers are more active in WA than any other state or territory at 24.9 per cent, down only marginally from 1993’s 24.3 per cent,” he said

“This is well above the national average of 17.4 per cent.”

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