Daniel McQuillan, managing director of Nu Wealth, has predicted that “Perth house prices are set for a major national rebalancing”, similar to what happened in the market 20 years ago.

Mr McQuillan said Western Australia’s strong economy would be the key factor that will help the rebalancing take effect over the next 12 months after experiencing a slightly slower growth than other states the past year.

“The latest national figures produced by the Real Estate Institute of Australia reveal that the median house price in Perth at $520,000 was the lowest median capital city house price across Australia and 45.9 per cent lower than the national average,” he stated.

The managing director also highlighted Western Australia’s robust economy with an unemployment rate of just 3.8 per cent, the lowest in the country.

“The state economy is expected to grow by 3.5 per cent in 2021-2022 which will be the fastest in eight years, delivering a budget surplus of $2.24 billion,” said Mr McQuillan.

“An additional 51,500 jobs are expected to be created this financial year in WA with unemployment expected to remain very low over the next four years fueling the demand for workers and housing.”

Crunching the numbers, Mr McQuillan looked at the eight capital cities’ latest weighted average median house price of $961,642.

He predicted that Perth’s median home price should not be far behind the weighted national average based on Western Australia’s strong economy, implying that the city has the potential to increase its median house price by $400,000.

https://www.theadviser.com.au/breaking-news/42434-rise-in-perth-house-prices-tipped-for-2022