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  • Writer's picturepeterward4

Ascientials Update September 2023


Family relaxing at the lake

In this edition

  • Perth remains extremely affordable

  • Perth leading the market in house asking prices: SQM Research

  • Have interest rates peaked?

  • Rents increasing nationally


 
Postive and negative gears

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.


 

Australia map with pin at Perth

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.


 

George Titch - genius on economic cycles

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


 




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