Why Are Sydney Retirees Buying Homes in Perth?9 Jun 2017
Why Are Sydney Retirees Buying Homes in Perth?
As one of the premier developers of house and land packages in the Perth area, we keep a close eye on the real estate market. The last few years, Perth real estate has been relatively stagnant while the Sydney and Melbourne markets have exploded. Lately, though, the difference between Sydney and Perth has become noteworthy.
Home prices have grown so fast in Sydney that many retirees are selling their homes and buying homes in Perth. The reason why: a modest suburban home in Sydney costs almost as much as two family homes in Perth.
In Sydney, the median home price is $970,000. In Perth, it is only $525,000. According to Hayden Groves, president of the Real Estate Institute of Western Australia, some apartments in Sydney now cost as much as family homes in Perth.
According to Mr Groves, it costs $1.1 million to buy a two bedroom cottage in Sydney that is in need of renovation. In inner-urban Sydney, the same homes cost upwards of $1.6 million and they don’t even have parking.
While many bemoan the supposedly “unaffordable” in Perth housing, Perth housing is actually affordable when compared to other capital cities. This is due to the end of the mining boom causing a temporary stagnation of housing prices in the Perth Market. This can also be seen as a failure of the Perth market to keep up with the rest of Australia.
The disparity is about the same in apartments. In Perth, $350,000 will buy a one bedroom apartment, while it would cost $650,000 in Sydney.
What it Means to Origin Projects Land Estates in the Perth Area
At Origin Projects, we continue to do what we do best: provide affordable housing in places you want to live. We do extensive, solid research before we develop any of our land estates, choosing Perth suburbs that are ready to provide capital growth.
The result is that you can usually put house and land packages together in our Perth area land estates for less than the cost of many established homes in the same suburbs.
To learn more, call us today: (08) 6500 4488.