Rising interest rates and an exodus of investors has trebled the number of houses on the market in Perth real estate. Figures released by the Real Estate Institute of Western Australia (REIWA) show a dramatic increase in number of properties for sale in Perth. The Institute says number of properties for sale has climbed from 4-thousand 8-hundred two years ago to almost 17-thousand today.
The President Robb Druitt says some investors are pulling out because it is no longer as profitable to invest in Western Australia. Others have been hit by interest rates and tumbling share prices. "There are a small number of people that do have to sell as a result of rationalisation of the stock market," he said. While properties are taking longer to sell, REIWA says there is still considerable demand.
Perth WA has seen a remarkable boom in the real estate market due to more than just the national property boom. The global demand for mining resources has given Perth and the Western Australian economy as a whole a major boost. This demand driven largely by China looks set to continue for the foreseeable future and large numbers of people have relocated to Perth in search of employment. Perth median house prices are at the $500,000 mark and have continued to rise while other Australian cities have slowed. The demand for rental properties is very strong given the growth and demand situation for Perth's real estate.