While land and housing values have taken quite a hit across Western Australia in recent years, housing affordability remains a critical issue across the state and indeed across the country.
Supply is currently outstripping demand in Perth, which has put downward pressure on prices. In fact, Perth is now considered one of the cheapest capital cities in Australia, with an average price of new land sitting at $230,825.
However, as the broader economic outlook improves, demand for new land and housing is expected to increase steadily in the next 12 to 18 months. This is likely to put upward pressure on prices once again.
While we do want to see positive growth in our property market, what we want to avoid as the market recovers is a similar situation to the previous mining boom, when demand for property far outstripped supply and developers were unable to keep up.
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Source: The West Australian