Perth’s housing sentiment remains stable
The growth outlook for the Perth housing market remains positive, according to a recent survey by UDIA and Urbis.
The May 2022 Home Purchasing Sentiment Survey found that 54 per cent of respondents were expecting property prices to increase in Perth over the next six months, with 43 per cent believing prices will rise over the next 12 months.
These figures remain steady when compared to expectations from the same survey in November 2021 and reflect people’s overall confidence in the Perth market despite some headwinds that have arisen since late last year, including looming interest rate rises.
Interestingly when asked about the potential impact of interest rate rises, respondents were not as perturbed as some might expect.
When asked if recent interest rate hikes had led them to likely defer or reconsider their purchasing decision, 53 per cent of respondents who were actively considering a property purchase said no.
Furthermore 54 per cent of respondents who were considering a property purchase indicated that the cash rate would need to reach above 1.5 per cent before triggering a deferral or reconsideration of their prospective purchase.
Given the official cash rate is currently sitting at 0.85 per cent, it is fair to say we have some time before rate rises really start to bite into consumer confidence.
Along with exploring consumer sentiment regarding the overall market, our survey also looks at where people want to buy in Perth.
Similar to the same survey in previous years, respondents preferred suburbs that were primarily either coastal or centrally located, close to high-frequency public transport and open space with other lifestyle attributes close by.
South Perth was the most preferred suburb in May 2022, followed by City Beach, Scarborough, Como and Applecross rounding out the top five.
Subiaco, Morley, Dianella, Cottesloe and Mount Lawley completed the top 10 and highlighted people’s love of the inner and middle-ring suburbs of Perth, whether they be north or south of the CBD.
Perhaps, unsurprisingly, when it comes to the type of housing people are looking for, freestanding houses topped the list at 73 per cent.
However, higher-density options such as medium density and apartments, including retirement living units, remain important, with a combined 25 per cent of respondents most interested in living in these types of housing.
These results particularly highlight the need for a diversity of housing options and opportunities for downsizers, given that 49 per cent of respondents aged 65 and over would consider a higher-density property.
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