The latest interest rate rises won’t reduce the demand for housing in Perth.
That’s according to Realmark managing director John Percudani, who highlighted the strong employment and migration factors which are currently driving price growth in residential properties.
“At Realmark, we’re witnessing most properties across all market segments receiving multiple strong offers on a daily basis. Including at auctions,” said Mr Percudani.
“The demand for housing in WA doesn’t appear set to change in the short term and is unlikely to be affected by the latest rate rise.
“However, property prices are currently increasing at a record rate in the Perth metro area, which to me suggests the cash rate could impact on the rate of price growth despite the elevated demand.
“Sellers should therefore be aware of buyer price sensitivity driven by affordability challenges and loan capacity impacts.”
Property values in Western Australia rose by an approximately an increase of 4.6% in the last quarter and are estimated to have risen by 10-12% for 2023 by the time the year is over.
Mr Percudani suggested price sensitive segments such as the first home buyer market may affected more acutely by a rate hike than mid or elevated value markets.
He re-iterated his advice for sellers and sales agents to employ smart sale strategies, such as a set date sale or auction, to ensure properties aren’t going undersold, and a fair and transparent process is experienced by buyers.
For more information, contact Realmark on 9328 0999.
