According to REIWA CEO, the Perth index has hardly changed since May when interest rates started rising. 

“The Western Australian economy and finances are among the strongest in the world. The population continues to grow and WA has one of the lowest unemployment rates in the country.  At a recent RBA meeting they noted there were currently more ads for jobs in WA than active candidates.” 

Furthermore, WA remains one of the most affordable places in Australia to live. Deloitte Access Economics recently undertook a comparative analysis of the cost of living in Perth with other major capital cities including Sydney, Melbourne and Brisbane, and found the cost of living in Perth is the lowest of the major capital cities.

“These factors are all supporting the property market and there is nothing right now indicating that house prices will fall drastically any time soon.”  

Property analyst predictions

Perth property analysts believe the interest rate rises will unlikely pull prices down, as opposed the Eastern States. In fact, many believe there will be gains in the property market in 2023. Here are some of their predictions for the Perth property market in the coming year:

  • With low levels of stock, excellent living affordability, and the cheapest median house prices of any capital city, there is nothing in the Perth property market right now indicating that house prices will fall drastically any time soon.
  • With some of the lowest property prices in Australia, yet strong rental returns, undervalued suburbs will move ahead.
  • The mid-range market is affected by interest rates, so growth will be minimal in those areas.
  • Interest rates should stabilise in the first half of the year. When the RBA indicates that it has finished raising rates and the market adjusts to the new norm the forces of demand and supply will kick back in and broad-based growth will be the only outcome.
  • More than $24 billion was invested in Western Australia’s mining and petroleum sector in 2021-22 which indicates a strong year ahead for the WA economy, boosting confidence as well as driving demand – but not to the extent of a major price increase.
  • The population in Perth is expected to grow to 2.9 million people by 2031 and 3.5 million people by 2050. This will place demand on housing, increasing property prices. Savvy investors will be investing in the WA property market right now. 

These positive predictions for the year ahead place Perth in a unique position where investing in property continues to show great opportunity.

Which suburbs will have the strongest growth in coming years?

Respected real estate professionals have identified that fringe suburbs in the sub-$300,000 range – such as Armadale, Balga, Midland, Gosnells and Kelmscott – will show solid growth in coming years as they are currently undervalued. 

Suburb growth will also be observed in northern coastal suburbs from Yanchep to Two Rocks, Mt Lawley, Mosman Park, Fremantle, Kwinana, Rockingham and Perth Hills.

However, long term predictions for the Perth property market look stable with growth set to continue across many locations.

Where will Perth property prices go in the next 10 and 20 years?
Backed by a growing population, affordable costs of living, low unemployment, and a strong resources and mining sector, the WA economy paints a clear picture of a State poised to grow.

By 2050, analysts forecast that Perth will become the third largest city in Australia after Sydney and Melbourne. 

For a state with one of the lowest national median house prices, the only way for Perth property to go is up. 

Where will Perth property prices go in the next 10 and 20 years?

Backed by a growing population, affordable costs of living, low unemployment, and a strong resources and mining sector, the WA economy paints a clear picture of a State poised to grow.

By 2050, analysts forecast that Perth will become the third largest city in Australia after Sydney and Melbourne. 

For a state with one of the lowest national median house prices, the only way for Perth property to go
is up.

Build with confidence in 2023

At New Generation Homes we are confident WA’s property market offers so much opportunity for 2023 – and beyond. While construction costs continue to rise, we are working hard to carry price increases to keep building accessible – and your new home dreams alive and thriving! In fact, we offer an extended fixed price hold period. Our Price Hold Guarantee will give you peace of mind knowing the price will be fixed for 9 months to obtain all approvals to commence construction – and is fixed for the duration of the build.

You can also take advantage of our 4-month Fast Track Guarantee* for Pre-Construction which means you’ll get into your beautiful new home, sooner.

Chat to our consultants today and let us help you achieve your new home dreams in 2023. 

Sources

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