New No. 2, Perth Property Prices to Overtake Melbourne

[Ergophobia]

Given the current trends, it looks to me like Perth will soon be the new no 2 in terms of property prices.

My forecast, end of Q3

Thoughts?

 

[Aaron_C]

Considering that Melbourne's sprawl is endless these days which dilutes the 'median' house in Melbourne I think the analysis is flawed. Just take a look at any inner-city Melbourne suburb property and compare that to an equivalent one in Perth to get a better answer. I don't know what the outcome of that would be but I suspect that Melbourne would still come out on top.

 

[Ergophobia]

Considering that Melbourne's sprawl is endless these days which dilutes the 'median' house in Melbourne I think the analysis is flawed.

imho, a city is a city.... although Perth is more of a town

 

[buzzlightyear]

Self Interested Perspective

I think that any analysis, publicity that confirms Melbourne property is cheaper, getting cheaper, eg being overtaken by Perth (for example), will start to germinate the idea/perception that it is time for prospective buyers to enter the market.

 

[Aaron Sice]

perth has some pretty decent sprawl, but a significant majority of it is coastal - hence the price skew.

just like melb is very much suburbanised and again, those figures can be watered down in almost any suburb.

 

[Ausprop]

Considering that Melbourne's sprawl is endless these days which dilutes the 'median' house in Melbourne I think the analysis is flawed. Just take a look at any inner-city Melbourne suburb property and compare that to an equivalent one in Perth to get a better answer. I don't know what the outcome of that would be but I suspect that Melbourne would still come out on top.

I'll give you kudos for being one of the few people that understands what a median number represents. This illustrates perfectly why a house will almost certainly experience compound growth despite a flat median

hmm apparantly I have given you too much kudos before... you really do speak sense!!

 

[DavidMc]

I think that any analysis, publicity that confirms Melbourne property is cheaper, getting cheaper, eg being overtaken by Perth (for example), will start to germinate the idea/perception that it is time for prospective buyers to enter the market.

For sure. Back in 06-07 when Melbourne was the 4th most expensive capital city (from it's usual 2nd) that was one of my signals to buy. Many suburbs achieved double digit growth that year, some even 20% from memory.

I'm not expected double digit, but 5% would be nice