Perth house prices have grown consistently over the past three quarters, with September quarter median housing prices rising by 1.7 per cent.
Perth house prices have grown consistently over the past three quarters, with September quarter median housing prices rising by 1.7 per cent.
The Australian Property Monitors September Quarterly House Price Series report has been released today showing that the national housing market has continued to boom in the three months to September, following a very strong June quarter, with quarterly house price growth of 3.7 per cent, the highest in six years.
APM economist Matthew Bell said the "extraordinary" recovery at the upper end of the market experienced in June in most major capitals has now spread to the rest of the country.
Nearly all capital city quarterly growth rates have been driven by strong sales of more expensive homes.
In Sydney, the country's largest housing market, median prices in the most expensive 50 per cent of suburbs grew by nearly triple the rate experienced in the least expensive suburbs.
"Another quarter of improving employment results and the share market rising by 20 per cent has meant that buyers are stepping into the oversold top end of the market to purchase properties at prices still below their late 2007 highs," Mr Bell said.
"In addition, sellers who sold properties into the booming first home owner market over the past year have used sale proceeds to upgrade to more expensive homes and units, placing even more pressure on upper end markets."
Despite concerns about softening demand from first-homebuyers affecting the property market following the decrease in the first-homeowners boost in September and increasing interest rates, mortgage brokers are reporting increases in enquiries from property investors.
In addition, according to the ABS, housing finance for investment purposes has risen nearly 8 per cent in August.
With the Australian housing market continuing to be underpinned by increasingly favourable economic conditions, APM sees rising interest rates as the main risk to house prices.
"Despite this, we expect that strong rental yields and the prospect of future capital gains are enticing many investors to enter the market in the second half of 2009 and early 2010," Mr Bell said.
"While the explosive growth seen in the upper end of the market is expected to slow as prices reach and exceed their late 2007 highs, moderate to strong growth is expected across the market as a whole for the remainder of 2009 and 2010.
"The question as to whether this growth can be sustained throughout 2010 depends on how quickly mortgage rates rise in the next six months."
