The decrease in the price average for many of Perth’s suburbs doesn’t necessarily indicate a direct relationship with the entire state’s current and future real estate situation
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Sydney, Australia (PRWEB) May 18, 2012
Reiwa.com.au currently features details of the recent median prices and percentage growth of all Perth suburbs covering a 12-month period leading to March of 2012. The list shows exact numbers on the growth of average home prices within Western Australia’s capital city. Surprisingly, among over 300 suburbs situated in Perth, only a handful show an average growth of more than 10% - Gidgegannup at the top with +70.60%, among others with an average fall in percentage growth of -7.6% and some even reaching as low as -48.80%. Although presumptions are yet to be made, the numbers on the list imply a cooling of real estate in Perth although other data indicates rental prices are still very strong.
In terms of economic standing and value, Perth is among the most stable not only in Australia, but in the whole world. A survey conducted on The Economist’s 2011 World’s Most Livable Cities, includes four cities from Australia – Melbourne at first place, followed by Sydney at sixth, Perth at eighth and Adelaide at ninth. Among the four mentioned, Perth continues to dominate the Western Australian economy as the center for developmental opportunities in a wide variety of markets. Although the city is geographically isolated and a large portion of the industries focus on serving immediate residential demands due, other economic sources such as the mining boom have flowed through to the real estate industry, and has helped push the city to its current flourishing status.
While many experts still see the remnants of the 2008 global recession drifting to Australia’s shores and the worldwide real estate bubbles creating a “housing price crash” side effect, the general fall in the percentage growth of real estate Perth properties and the unexpected increase for a few of its suburbs may have other more relevant causes from within than outside. Taking a closer look at two of the suburbs with the highest and lowest growth percentage might just explain how any factors could have influenced their current standings.
Cockburn Central was listed at -48.80% and it being one of the major coastal cities in Western Australia, the city’s industries focus on shipbuilding. The city also includes a chain of five different lakes running through the center, plus the historical and tourism areas protected by law situated in most of Cockburn. All these physical features make it a little difficult to allocate more areas for industrial and residential real estate. On the other hand, Gidgegannup came in with +70.60% growth. Looking at its scenic rural setting, with nature reserves, large farming properties and a wide area for smaller hobby farms, prospects of developing the land are very high and the wide farming areas are suitable for developing any property Perth residential area.
The figures presented are raising questions about Western Australia’s possible real estate trends towards the succeeding years. However, the decrease in the price average for many of Perth’s suburbs doesn’t necessarily indicate a direct relationship with the entire state’s current and future real estate situation. While some physical features and external or internal economic factors may contribute to these changing numbers in the annual growth percentage, it still doesn’t change the fact that Perth still ranks as one of the world’s best cities to live in, and people can rest assured that property portals like reiwa.com.au will continue to monitor the changing real estate conditions and help the general public by distributing essential current information through its website.