Does anyone has any logical explanation to the fact that houses in Adelaide are more expensive than in Perth ?
Similar properties are roughly $200k more expensive, e.g. $650 vs $850 despite the fact that median salaries in Perth are ~$15k higher than in Adelaide.
It looks like Adelaide real estate market is overheated even compared to already hot ones in other state capitals.
Why Houses in Adelaide Are More Expensive than in Perth ?
Foma2 on 16/06/2022 - 11:03
Comments
Your negs are well deserved. And I say that as a Victorian.
The only thing worse than flying into Adelaide airport is flying into the World Trade Centre.
Pretty poor taste
Adelaide has a better city area, better beaches, better public transport, better weather, better everything except footy teams.
Debatable.
But hey, each to their own.I wouldn't say Adelaide beaches are better, and the weather is colder if anything.
Fewer shark attacks than WA. Too soon?
Adelaide has better beaches than Perth?
And better Weather?
Less Sharks?
better public transport
exactly the reason why i am driving in my own car yeah? to waste hours in public transportation waiting, and constant stopping, and taking a different route
better city area
So shops that close at 5 on Saturdays and 4 on Sundays?
Liveable city. Folk in Adelaide value their lives.
It’s not the most shop-able, not the most work-able.
It’s not for everybody,…😎
I personally bought house in Perth in beach area. Nice price nice people.
My suggestion is that it's the closest vestige for investors who got sick of the Melbourne property market and wanted to ruin the next one over.
They've come up here and ruined everything as well.
This! I kinda reckon its those that couldn't crack the Melbourne market have grabbed their investments in Adelaide.
It's terrible that homes are seen as investments that you should get in on before they go to the moon, like Bitcoin or company shares. Unlike Bitcoin and shares, housing investment market makes some people wealthy at the cost of the rest of the country.
Kinda what happens when you commoditize housing sadly…
Adelaide is a very short flight to Melb, Syd and Bris. Perth is psychologically too far away for many people on the east coast.
Mining boom in WA went boom a few years ago compared to say 10 or 20 years ago.
Free settlers keeping prices artificially high.
Um, Perth was free settled.
if the fact you say are true, move to perth
Why are Sydney houses more expensive than Adelaide?
Less churches in Sydney
but more mosques
In Perth, people remember the peak of 2012/13 and the 8 years of property price decline that followed. The decline was driven by the Iron Ore price crashing from USD$140/t to USD$30/t in just 2 years. For less than a carton of beer you could get a ton of Iron-Ore delivered to a port. It was madness and everyone saw how quickly fortunes can change.
Prices still haven't returned to pre-2013 level. What that means is buyers here are more cautious spending big having very recently seen a sustained downward trending market. It is not seen as the stable and reliable investment the east states see property as.
"Consumer confidence" is thrown around a lot, but there just hasn't be that confidence in Perth that if you buy a property you will get the average 4% a year that Adelaide has had for 10 years. In fact, if you bought a property in 2013 on average it's worth less now than when you bought it for.
Take a look at the graph on the bottom of page 1 - https://reiwa.com.au/uploadedfiles/public/content/the_wa_mar…
Perth has the borrowing capacity to push prices higher, they don't because the return on investment hasn't been there. There is no FOMO driver.
Well said,
Perth investors are more wary/stuck in their 2013 purchases awaiting to capitalise some 9 years later. Eastern staters are hell bent on infinite growth!I know once bitten, twice shy, but why wouldn't you start buying again when P&I mortgage repayments is the same as rent (based on a 30 year loan @ 5%IR)?
Seems crazy not to buy.
In 15 years, the mortgage repayments will be the same as today, and rent will be 50-100% more.
hmmm with house prices/rent the way they are in Perth, maybe I should start looking to invest there.
Yep, If you are good to tie up the capital for the deposit then it's pretty close to free money. Perth vacancy rate is 1.2%. It's attractive for investors.
Perth was just coming on the boil, then interest rates have made people weary and it's back to a simmer. I think Perth will go up or sideways. Can't see it dropping by the national figures in the click bait.
It was tipped for a 10% rise by REIWA in 2022 prior to the inflation crisis. (Note REIWA are an real estate industry body).
I agree with 'I think Perth will go up or sideways. Can't see it dropping by the national figures in the click bait.'
Because it hasn't shot up like other states, less chance of it falling.
With low vacancy and high rents, you're always going to have investors and first home buyers buying into the lower end of the market (which will stabilise the middle priced suburbs).
Hard to get and high rents -vs- buying lower end property. I know what I'd chose.
If this was the sharemarket, the P/E ratio would have already increased the share price.
You are spot on but unfortunately there are still loads of people getting sucked in and find themselves in trouble in Perth. Can't really blame them because numerous outlets had been spreading the words for the last 5 years that the Perth property is recovering and on the way up. We personally have relatives and their friends whom bought in 5 years ago only to find themselves losing 5-10% on top of the interests.
Why would you want to live in Perth is the answer lol. It's pretty simple - the more desirable the location, the more expensive it is…
Perth is great.
Wish Adelaide would return to its reputation as a backwater — kinda getting pricey for locals.
Yes, folk in those ‘other’ places need to keep facing the front of their rat race wheel and stop looking around……
Perth is a shithole.
i know so many young professionals that couldnt wait to get out of Adelaide due to no jobs. theyre all in syd for some reason
It could partly be due to Adelaide's geography. The city expands north and south. It can't expand west, and east is severely curtailed by the hills.
I know some people who absolutely refuse to live further than 10km from the CBD. So they end up bidding each other up for the limited stock of land and houses in that area.
The city expands north and south. It can't expand west, and east is severely curtailed by the hills.
Ummm, yeah sure, that's what makes Adelaide different to Perth…
"The city expands north and south. It can't expand west, and east is severely curtailed by the hills."
carboncopy truth for Perh
Is it because Adelaide houses aren't built on sand?
Sometimes I do envy the US in that every state has such a unique identity and lifestyle while still having a central business hub for work. It's basically a country of 50 different Sydney's and Melbourne's, just much bigger ones.
In Australia, if you want anything remotely resembling a convenient metro lifestyle, you need to put up with the one of two cities, both of which have some serious problems. There's really no opportunity to start your life over, experiment, or move elsewhere without taking a massive hit to your career and financial prospects.
We really need to start building metro districts outside of the 2 big cities. Though something tells me that as soon as a coffee shop or school opens up in a new city, prices will just go up to Sydney or Melbourne levels because "it's the city of the future!". Investors have acrually started to get in the way of progress.
Adelaide is the third most liveable city in the world, Perth doesn't even crack the top five.