In this edition
Perth remains extremely affordable
Perth leading the market in house asking prices: SQM Research
Have interest rates peaked?
Rents increasing nationally
Perth remains extremely affordable
Like all capitals in Australia, Perth is facing a significant shortfall in new homes over the next couple of years. The big difference is, it remains extremely affordable with the average price of new land is around the $243,650 mark.
Add to that the strong population growth and we have short supply and strong demand - a perfect recipe for price growth in property.
Perth leading the market in house asking prices
SQM Research's Weekly Asking Prices Index continues to show that greater Perth's house values are growing at a much higher rate than all other states. Continue reading to see a house price only summary, and the full index table.
Note that these are "Asking Prices" across all houses, not median house prices.
Have interest rates peaked?
Australia's cash rate presently sits at 4.1%.
Further to my May newsletter article on the yield curve indicating that rates will be declining from early in 2024, it seems that CBA, Westpac, ANZ and AMP all agree. With some forecasting the rate falling quite low in 2024, all agree that rates will begin to decline early in the year.
Rents increasing nationally
Rents continue to increase nationally as supply of housing continues to be tight, but Perth is leading the field with the lowest vacancy rate of the big 4 states - 0.7% in July, down to 0.5% now.
Perth's current median rent of $599pw (above the national average) represents a yield of 5%* - an exceptional performance compared with Brisbane at 4%, Sydney at 2.8%, Melbourne at 2.9%, Adelaide at 3.8%, Hobart at 4.1% and ACT at 3.5%.
*against current median house price