Perth is now a nation-leading market, showing strong resistance to downturn pressures as it maintains high levels of sales activity and good price growth.
In contrast to trends in the biggest cities, Perth has delivered strong levels of sales volumes in the latest quarter, despite all the disruption from interest rate rises, high inflation figures and all that ridiculously negative media.
Every quarter we analyse sales activity for every suburb and town in Australia, because it’s a forward indictor of what will happen with prices.
Of 179 suburbs Perth we’ve analysed in our latest survey, 131 are categorised as rising or consistency markets.
That compares with 134 in both of our two previous quarterly surveys.
Only a quarter of Perth suburbs are classified as plateau markets – these are suburbs where sales volumes have tapered off below peak levels – compared with half of suburbs in mid to late 2020, before Perth began its current growth cycle.
As we noted in our previous survey three months ago, many of the stand-out municipalities are at the affordable end of the market.
This buoyancy at the lower end of the market confirms Perth’s status as the most affordable housing market in capital city Australia.
By that I mean that the median house price in Perth is currently the lowest among all the state and territory capital cities in Australia.
Across the Greater Perth Area, there are lots of suburbs where sales activity – which means buyer demand – has been rising strongly, quarter by quarter, over the past two years – and is still rising, amid all the current disruptions.
Where there is evidence of lessening demand in Perth, it’s primarily in the more expensive areas. These include the municipalities of Cottesloe, Mosman Park, Fremantle and Nedlands.
But, in the more affordable areas of Perth, it continues to be a story of busy sales activity with prospects for ongoing growth in property prices.