Eastern states investors attracted to WAs affordable house prices

The latest figures released by RP Data show house prices in Perth are now becoming more affordable relative to other capital cities in Australia, which should in turn stimulate greater interest from Eastern States property buyers in the coming financial year.
Perth’s median house price now ranks at fifth most expensive in the country. During May, the median house price in Perth was $496,000 – lower than Melbourne, Canberra, Darwin and Sydney. The median house price in Perth is now just marginally higher than Brisbane and over $100,000 lower than Sydney.
This ranking is unexpected given the state’s very low rates of unemployment, high average wages and surging population growth. In addition, the economic outlook for Western Australia is now one of the most positive for any region in Australia.
Perth house prices are now becoming more competitively priced on a national level because we did not experience the recent strong price growth rates occurring in other Australian capital cities. RP Data figures show that over the year ending May 2010, the median Perth house price rose by 6.1% which was the lowest growth rate of any capital city. In comparison, the median house price in Sydney surged by 18.2% to over $600,000.
Eastern States property buyers have been largely absent from the Perth real estate market since 2006 when property prices surged in Western Australia. However, with the latest economic projections now indicating strong economic growth in Western Australia over the coming year, it is expected that many Eastern States property buyers will be looking to Perth and regional centres to take advantage of rising property values.
Based upon previous selling trends to Eastern States buyers, Professionals expects that property owners in more affordable suburbs within a twenty kilometre radius to the CBD should benefit from any surge in activity by interstate buyers. Historically, interstate buyers favour properties closer to the CBD based on their previous experience in larger cities such as Sydney and Melbourne where these near-city locations tend to deliver higher rates of capital growth.
Professionals have found that previous sales to Eastern States buyers tend to range South to Maddington, as East as Midland and North to Greenwood.
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