Perth property prices high, growth softens
The average dwelling price in Perth reached $519,000 as of the end of July, according to the latest RP Data-Rismark July Hedonic Home Value Index Results.
While the figure is behind the likes of Sydney and Melbourne, the Western Australian capital has scooped up third place for its median dwelling prices across all capital cities.
This puts it ahead of Canberra ($516,250), Darwin ($515,000), Brisbane ($450,000), Adelaide ($395,000) and Hobart ($300,000).
Those building new homes and buying properties in Perth may continue to see favourable yet balanced capital growth, if yearly figures are anything to go by.
Unlike the frenetic pace of the Sydney property market, Perth's dwelling prices grew 3 per cent year-on-year to July 31. This puts it behind the combined capitals average growth (10.2 per cent) and rest of state growth (3.5 per cent).
This could indicate that while Perth's dwelling prices are high by capital city standards, growth is more measured, which is favourable for first time buyers investigating single and double storey home designs.
"With interest rates remaining low and fixed rates seeing further downwards pressure, we are expecting that capital gains will continue into the foreseeable future. What is likely though is that the rate of capital gain will continue to reduce, particularly in those cities where affordability constraints are the most significant and rental yields are the lowest," explained RP Data Research Director Tim Lawless in an August 1 statement.
Meanwhile, the Real Estate Institute of Western Australia (REIWA) has weighed in on Perth's property market activity.
REIWA President David Airey explained the softening of Perth's median dwelling prices, thanks to weaker market activity in the metropolitan area. Listings dropped in Armadale and Gosnells, however sales increased in Joondalup.
Now could be an ideal time to buy property a first time home owner in a bustling capital city without coming up against potentially unsustainable growth felt elsewhere in the country.