PERTH STILL PICK OF THE BUNCH FOR PROPERTY INVESTORS
17 May 2005

The latest median price figures reveal Perth remains a real estate paradise for investors, according to a Subiaco-based property buyers consultancy.

Property Wizard's Director Trevor Dunkley said despite the median price of established homes in Perth rising 13.3% in the year to March*, Perth still provided a haven for prime investment compared with capital cities on the Eastern seaboard.

"The figures translate to a preliminary median house sale price in Perth of $284,500. That compares with a median of $505,000 in Sydney (December) and $352,000 in Melbourne in March," Mr Dunkley said.

"It's clear from the new Perth median, that homes in the West are still far more affordable than other states. "

Property Wizards said research indicated interest on an 80% loan for a Perth median priced house costs 30% of WA weekly earnings (AWOTE); in Sydney it equates to around 53% of weekly wages and 37% in Melbourne.

Mr Dunkley said several key factors were ensuring the Perth real estate market was continuing to provide prime investment opportunities.

"Government entry and exit costs are much lower when purchasing a property in Perth, amounting to about 3.9% of the purchase price. In Sydney, where investors are hit by vendor duty on a sale, it amounts to 6.2%, while in Melbourne it is just over 5% - those considerations make a big difference for buyers," he said.

"As well, driven by our wealthy resource sector, WA is enjoying strong economic growth of around 6.5% as compared with about 5.3% nationally.

"The state is also recording low unemployment and population growth above the national average - which all means Perth will continue to be a hot attraction for families and business people in the years ahead.

"Those factors, together with the fact that there is a limited supply of quality properties, means house prices are likely to be driven further upward for quite some time yet."

Median house prices in Perth have grown by an average 12.2% a year over the past five years.

Property Wizards is situated in Subiaco and is one of only a handful of licensed specialist property buyers' agents in Perth.

*Figures from the latest quarterly report by the Real Estate Institute of WA.

For more information, please contact
Mr Trevor Dunkley
Director
Property Wizards
trevor@propertywizards.com.au
Tel: (08) 9381 7450