Eastern States Slump Good News For WA

09 Jan 2019| Posted by: Donna Goddard

Historically the Perth market bounces when the Sydney and Melbourne markets come off the boil but in this cycle there are also other factors working in favour of WA according to RE/MAX WA Managing Director, Geoff Baldwin.

“Western Australian property owners have every reason to feel confident about the future of their investment in property whether it be their own home or rental home and prospective buyers are well advised to take action sooner rather than later.

“Due to softening of property prices and continuing low interest rates WA is now one of the most affordable Australian States when comparing the percentage of average income required to pay a home loan.

“In 2008 the average Perth house price was only $100,000 below Sydney’s however it is currently $500,000 lower pointing to massive scope for growth in WA over the next decade.

“Rental demand in WA is growing again and the attention of property investors and developers is again turning to Western Australia as buyers compare prices and future potential returns.

“The WA economy is unarguably in a new growth cycle on the back of renewed activity in the resource sector which will lead to population growth, employment growth and overall demand.

“The focus on falling property prices and the slowing market in the eastern states will ensure that the Reserve Bank keeps interest rates low for the medium term and possibly even for the long term which is great news for WA.

“In summary, there will be no better time to buy property in WA than the present Mr Baldwin said.