HtAG Analytics co-founder Alex Fedoseev said the affordability of many suburbs has worsened in the past three years.
“Many prospective homebuyers face an overwhelming challenge when it comes to buying property in their desired area,” he said.
He said prime suburbs situated near the water or in upscale locations attract a population with well-established, generational wealth.
“In these areas, wealth often outpaces wage and income growth for the general population,” he said.
“The high demand for premium real estate from affluent residents drives up prices, making it challenging for individuals with lower or average incomes to afford houses in these neighbourhoods.”
However, he predicted the least affordable suburbs would see slower growth than more affordable areas.
“Suburbs with high years to own values are likely to experience downward pressure on house prices, as locals may struggle to afford to purchase houses as prices rise and incomes lag,” he said.
“However, there are other market variables that may still push the prices up even in low affordability markets.”
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The Perth property market has been impacted by a number of variables that have put upwards pressure on price growth including WA’s growing population, rental crisis and increasing costs and ongoing delays in the building industry.
According to REIWA, despite a dozen interest rate rises properties in Perth are selling at the fastest rate since records began in 1998, and the number of properties on the market is plunging as sales outpace new listings.
CoreLogic’s Perth home value index increased 1.3 per cent in May and 2.4 per cent over the past three months to see Perth house prices hit a record median of $672,177.
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