The sun might rise in the east and set in the west, but Perth’s property market continues to outperform its eastern coast counterparts, according to CoreLogic’s most recent home value index.

Property prices in the city have proved their resilience to the downturn, with the median value up 2.4% in Februarywhen compared to the same time last year.

For comparison, prices in Sydney, Melbourne and Brisbane plunged in the wake of ten consecutive interest rate increases, falling 13.4%, 9.6% and 6.8% year-on-year respectively. This begs the question: why’s Perth’s property market bucking the trend?

There are three answers to that question…

1. Perth’s relative affordability 

Perth is one of the most affordable capital cities to buy a home in, with a median value of $561,740 in February, according to CoreLogic.

But while properties are relatively affordable, salaries in Western Australia are the second-highest in the country, with the average worker earning $1,988.50 per week (or $103,402 per year) in ordinary-time earnings, according to the Australian Bureau of Statistics.

This, in turn, gives you a dwelling price-to-income ratio of 5.4 – the lowest in Australia – and has meant many home buyers and homeowners have been able to absorb the interest rate rises.

 2. Perth’s strong economy

Western Australia’s economy is booming, driven by a strong resource sector and a tight labour market that’s attracting both interstate and overseas migrants, adding to the demand for housing.

 3. Perth’s low stock levels

While demand for housing is surging, listing levels are extremely low, dropping to 12-year lows in December, according to the Real Estate Institute of Western Australia.

At the same time, sales volumes have remained strong, keeping upward pressure on prices.

Get a second opinion…Ten consecutive rate hikes later, now is the right time to start asking questions. If you are an owner-occupier, first home buyer, or a property investor, it’s important to make sure that you’re not paying more than is necessary for your property loan. If you would like to get a second opinion from a finance specialist we would be more than happy to introduce you to the right people.