Perth’s Property Market at its Peak:
Tim Graham discusses the shift in Perth’s property market as it reaches its peak. He shares insights from Hotspotting’s Price Predictor Index, explaining how rising sales activity often leads to price growth, and how Perth’s market is now experiencing a slowdown due to decreasing sales.
Why Perth Was Doing Well:
The strength of Perth’s recent growth can be attributed to a proactive state government, affordability, and a resurgence after many years of stagnant prices. Tim highlights how the state’s openness to investors has played a key role in this boom. The Emergence of New Market
Leaders: With Perth cooling down, other markets are emerging as leaders. Tim explains that Melbourne, despite economic challenges, is showing positive rankings in many suburbs. With a correction in its market and its relative affordability compared to Sydney, Melbourne is attracting new investment.
The Impact of Affordability on Investment: Tim shares his thoughts on why people are moving to more affordable areas, not just due to COVID, but as part of a broader trend of seeking better lifestyle options. The ongoing affordability factor in Melbourne and other markets is a key driver of growth.
Infrastructure Projects and Market Impact: Tim discusses how infrastructure developments, like the Westgate Tunnel project in Melbourne, are expected to influence property prices, particularly in the city’s west. However, he questions whether these infrastructure projects will be a game changer for the market. Interest Rates and
Housing Affordability: The conversation touches on the possible future of interest rates in Australia. Tim explains that the biggest challenge in real estate isn’t interest rates but the lack of housing, which continues to drive prices up despite rate changes.
overnment Policy and the Housing Shortage: The interview wraps up with a discussion about the Victorian government’s efforts to alleviate housing affordability, including stamp duty discounts. Tim points out the unintended consequences of these policies, suggesting that the focus should be on helping developers to start new projects.
