Debate over property boom in Perth

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Debate over property boom in Perth
14 December 2006
The property boom in the Perth housing market will ease according a leading forecaster. But ANZ senior economist, Ange Montalti, believes that the Perth market will rise a further 12.3 per cent before falling 1 per cent in 2008. The Australian Bureau of Statistics records show that Perth prices climbed 45.9 per cent in the year to September 30 and data shows that a typical house in Perth is now more than 15 per cent more expensive than in Melbourne. Michael McNamara, from Australian Property Monitors, said the 40 per cent-plus growth was unsustainable. "Property prices are growing faster that wages are," he said. "At some stage people's capacity to pay creates a natural ceiling on the market".

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