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Analysts predict the growth in Perth’s property market will be the biggest of all capital cities next year, with its median house price expected to jump 5 to 7 per cent.
In its annual report on the capital cities, Australian Property Monitors forecasts the increase will be matched only in Darwin and the national rise will be lower at 3 to 5 per cent.
The report says the Perth market is set for a strong year from record immigration, housing shortages, steeply rising rents and one of the world’s strongest economies.
The national median house price rose just one per cent in the 10 months to October.
“Darwin and Perth have the best prospects for price growth, while Sydney and Brisbane are also expected to achieve reasonable growth in the year,” the report says.
APM senior economist Andrew Wilson said growth in the Perth median house price would be up to 4 per cent this year, setting the scene for further increases.
Dr Wilson said interest in the WA economy was putting pressure on residential resources and had already started to drive up prices.
The increases came after big rent rises, which pushed renters into the buying market.
“Perth still remains below its previous peak prices of two years ago but I expect it will start to get close to those previous peaks, if not surpass them, some time in 2013,” Dr Wilson said. “I don’t think it’s unrealistic given we’ve got 4 per cent this year and we’ll build on that to 5 per cent next year.