Perth Monthly Market Wrap
by Brett White
The stagnant market in Perth continues this month. This can be observed around fringe areas that are suffering from oversupply. The median price has dropped by a small fraction from $515,000 to $510,000, this is still not final and will be expected to increase to $517,000 after all sales in the area have been settled. Despite the small drop in median price and the static market, consumer and business confidence is rising.
There has been new large-scale developments in new iron ore mines and this shows that the mining investments are starting to grow again. This will open up new job opportunities and will have a positive effect on the market. Whilst interest rates are still low, we can see a positive trend and an increase in prices in the near future.
Land prices in the outer suburbs are still at available at an affordable price because of the large scale land developments and this will surely fit the budget of a first time home owner but this also has drawbacks to some people especially those who work in the inner-city. Traffic will be an issue for people who decide to buy their homes in the outer suburbs and the distance from the amenities and recreational activities the inner cities offer will affect the quality of life living farther away. One solution is to buy a property nearer to the CBD but people may have to sacrifice land size, construction quality, functionality or settle for a less desirable area.
