Perth property cycle bottoms out, prime market for investors

The report revealed that on the measurement of price to income ratio, Perth (5.5) was now more affordable than Brisbane (5.7), Sydney (8.3), Melbourne (7.1) and Adelaide (6.2).

Only Darwin (4.5) was more affordable than Perth, while Hobart (5.5) was equal to Perth in terms of affordability.

These figures confirm that Perth has reached the bottom of its current property cycle.

With a population of more than two million, Perth’s high level of housing affordability will draw buyers from Western Australia and interstate to the market in 2017.

Professionals are already finding strong demand for established houses in Perth that are priced below $400,000 because many of those homes are now cheaper to buy than building a new property.

This is particularly the case in the southern suburbs of Perth stretching from Armadale in the east to Rockingham in the west.

Buyers are attracted to these areas because they have established social infrastructure such shops, schools and rail connections, unlike new housing sub-divisions.