Perth Now The Most Affordable State Capital City In Australia To Buy A Home

Perth along with Adelaide are now the two most affordable capital cities in Australia to buy a home according to a survey conducted by Property Club.

According to Troy Gunasekera, WA Property Club State Manager, the ratio of annual income in Western Australia compared to the median house price in Perth was now 5.6 which was the same as Adelaide.

In comparison, is now takes 10.4 times the annual salary for someone living in New South Wales to buy a house in Sydney.

Melbourne is the second least affordable city to buy a home with an annual salary to house price ratio of 7.8 followed by Brisbane at 6.5 and Tasmania at 4.3.

The overall ratio of annual salary to average house prices in Australia is now 7.7.

Median House Price Average Weekly Full Time Earnings Annual Average Full Time Earnings Ratio

This survey result is very positive for the Perth real estate market moving forward.

Property Club which operates throughout Australia is now becoming more active in the Perth real estate market because house prices are now becoming more affordable and we see green shoots in the local economy such as a stabilisation in commodity prices.

"Property Club members from all over Australia have purchased property in Perth over the past two decades during the bottom of property cycles. Perth is now approaching the bottom of its current property cycle and as a result our members are gearing up to buy property in the city."

“Perth is emerging as a property buyers paradise and Property Club is predicting greater interest from inter-state buyers over the coming year."

“As a rule, astute property investors should buy in a subdued property market as our members did in Sydney during the mid 2000’s and subsequently achieved huge capital growth due to the property boom in Sydney over the past four years."

“Property Club is becoming more active in the Perth market but is taking a very selective approach to buying property in the city as there are some areas such as the inner city where there will be a large over supply of properties for some time that will keep property prices depressed for some time."

“Our research department has identified a number of selected areas in Perth that are very well priced and offer strong prospects for capital growth moving forward."

“Overall, Property Club research indicates that Perth has nearly reached the bottom of the current property cycle with very competitive house prices attracting buyers back into the market which overtime will result in an upward pressure on real estate values.

"The potential for future capital growth for Perth house prices is very positive with signs that the main driver of the WA economy - the resources sector - could be on the cusp of a recovery."

"Already this year, capital raising by Australian resources companies has exceeded $800 million which is 50% higher than this time last year.

"Lithium is also emerging as a new resources boom in Western Australia - a precious metal used in rechargeable batteries for mobile phones and in battery driven cars.

"The use of Lithium in cars is set to explode over the coming years with Goldman Sachs predicting that within a few years 22% of all cars worldwide will be battery driver. With 20 mining companies finding sizeable Lithium deposits in WA, the State has the potential to be the biggest producer of Lithium in the world," he said.

Property Club members have continued to benefit from our extensive Research and more, with 5,000+ members in our Property Millionaires Club!

Property Club members are having a lot of success with Club research assisting them to acquire a residential property portfolio, that will give them more choices in retirement!

Make sure you contact your Property Mentor to assist you to catch the wave as well!

Have a great weekend and catch you next week!

Warm Regards,

Troy Gunasekera National Manager Property Club