WHILE MOST Australian property speculation stays focused on the eastern state capitals of Melbourne, Sydney and, more recently, Brisbane, astute investors are tuning into what is happening in the west.
Western Australia is the standout performer in the country's property market, with Perth experiencing an almost 24 per cent increase in house prices in the 12 months to March.
According to the Real Estate Institute of Western Australia (Reiwa), Perth has leapfrogged Brisbane in terms of property values. If the pace of growth continues, Perth is likely to soon surpass Melbourne and Canberra, putting the city behind only Sydney in the race to claim the most expensive real estate in Australia.
Those who spotted the trend and were brave enough to act have done very nicely. Perth's median house prices have more than doubled in five years, and continue to grow. Figures for the March quarter show an increase of 5.1 per cent over the December quarter, setting a new median price for a Perth city home at A$353,000 ($2.05 million), up A$17,000 from the December quarter. All market indicators point to equally impressive June figures, industry experts say.
And it is not just metro Perth that is causing joy. The increase was higher in regional Western Australia, at 26.4 per cent, said Reiwa vice-president Rob Druitt.
The good news for landlords continues. Median rents in the metropolitan area have grown by 30 per cent in a year to A$230 per week, while vacancy rates hover around a low 1.4 per cent.
Mr Druitt said demand was still outstripping supply, and properties were typically selling within 18 days, down from 48 days a year ago.
