Perth set to become the leading property market in Australia
The report ‘Residential Property Prospects 2012-2015’ released by BIS Shrapnel at the end of June is forecasting Perth to experience 22 per cent growth in the median house price by 2015 to become the strongest performing capital city in Australia.
WA is set to record the strongest growth in property prices over coming years, ahead of all other states and territories. The latest report released by BIS Shrapnel, Residential Property Prospects 2012-2015, reports that properties in the resource-rich states of Western Australia, Queensland and the Northern Territory are already showing signs of recovery and are set to improve further over the next three years.
Perth is predicted to experience the strongest growth in median house prices of 22 per cent by 2015, about 7 per cent growth each year with compound increases. Brisbane is forecast to closely follow at 20 per cent, Sydney at 17 per cent and Darwin at 15 per cent. Lower interest rates and accelerated population growth are indicators that conditions are starting to improve in these capital cities.
Western Australia’s strong fundamentals will underpin the growth phase, according to BIS Shrapnel senior manager and author of the report, Angie Zigomanis.
“With unemployment in the state already leading the nation at 3.8 per cent in March 2012 and economic and income growth to continue to strengthen, the first stages of a turnaround should appear in 2012/13 before stronger price growth emerges in 2013/14 and 2014/15 as economic growth approaches a peak”, he said.
“If you’re in a position to get into the market, the next 12 months presents a period where buyers will still be in a better negotiating position, after this it will then become more difficult for buyers,” he said.
The report, however, predicts a two-tiered national market with the remaining states and territories lagging behind with only minor growth due to underperforming economies and excess supply.