Perth performs well in latest growth cycle
The RP Data Core Logic Home Value Index presents interesting figures for those considering buying or building a new home in the Western Australian capital.
Alongside Sydney, Melbourne and Darwin, Perth was the only other capital city to experience "double-digit value growth" over the current growth phase.
Following 19 months of declines in house prices, the growth cycle commenced in June 2012 and has been going strong for well over a year.
Perth home values have increased 15 per cent over the cycle, not far behind the likes of Melbourne (19.5 per cent).
This is excellent news for anyone investigating building a single or double storey home in the popular Western Australian capital.
Perth may be a perfect pick for buying property - while Sydney has experienced strong growth, it's quickly becoming an option that's simply too expensive for first-time buyers.
Accordingly, Perth may be a better pick for families looking to get a leg up on the property ladder initially, while potentially seeing solid capital growth in the months and years to come.
A low cash rate (2.5 per cent) is just one factor that influences activity in the market. The Reserve Bank of Australia board has retained the OCR at this figure since August 2013, and expects it to remain stable for some time yet.
Of course, it could rise at some point, making it prudent for home buyers to get on the property wagon sooner rather than later.
RP Data also pointed out other factors influencing the property market, commenting on the Australian Bureau of Statistics' recently released building approvals figures. Across the nation, approvals grew by 9.4 per cent year-on-year to July. However, approvals are lower than their peak during January 2014.
Buying in Perth could be a solid move for the years to come.