Perth is set to record modest house price rises for 2013 and 2014, according to SQM Research’s Perth Housing Boom and Bust Report.
The report detailed managing director and property analyst Louis Christopher’s assessment of Perth’s property market currently and in the future, along with detailed information on the economy, demographics and the hottest locations in the capital.
Despite Mr Christopher’s forecast last year that house prices in Perth would rise between six and 13 per cent this year, it has now been revised to four to seven per cent.
Speaking about the report, Mr Christopher said Perth would report another positive year for capital values, thanks to falling interest rates.
“However, believe there is some evidence now that a mining downturn is having an impact upon the rental market, with a clear trend towards rising rental vacancies," he said.
“Rising vacancies may make investors somewhat cautious for the second half of this year, hence why we think the market is likely to slow down.”
According to Mr Christopher, the chances of falling prices in Perth this year or next year are very remote as he believes the mining downturn would be buffered by a falling Australian dollar.