- House prices increased 1.8% while unit prices rose 2% in Q4 2021
- The relatively slow price growth is attributed to tight border restrictions in WA
- Perth is still the most affordable capital to buy a house in
Perth median house prices continued its upwards trajectory increasing 1.8% in the December Quarter last year to reach $612,348, but momentum is slowing according to a report released by Domain.
The capital maintained its title of the most affordable city to buy a house while other capitals broke records for highest median house prices.
Nicola Powell, Domain Chief of Research and Economics, attributes the comparatively sluggish price growth to extended border closures which she said continues to hamper housing demand as potential home buyers and investors are prevented from entering the city.
“Once borders reopen, this could provide another wave of new demand, freely allowing an easier relocation from overseas and interstate,” Dr. Powell said.
Median unit prices rose 2% in the fourth quarter last year, also continuing on the upward trajectory to reach $380,353 according to Domain’s data.
Perth house and unit asking prices
“Perth has been benefiting from a positive net flow of residents into the city, although easing slightly from the highest point in eight years. This has been a huge change for the city that had seen a drain of residents away.
“That being said, sale volumes are sitting close to record numbers and demand remains strong but looks to be easing,” Dr. Nicola said.
She explained that low-interest rates are spurring demand for housing along with increased saving and reducing spending as border closures prevent travel plans.
“Perth remains a sellers’ market, this is helping to entice more homeowners, reacting to rising prices and putting their homes up for sale.”
“While it is still a competitive market for home hunters, rising supply and easing demand trends should support more realistic seller prices and greater buyer choice.