Perth house prices rise by a third
While house prices in most of Australia grew at modest levels, Perth saw a massive rise of nearly a third on the back of commodity price increases.
Major cities like Sydney felt the impact of interest rate rises with Australia's most expensive city for housing seeing growth of just 0.5 % in 2006.
Perth, by contrast, showed startling growth of 31 % in the same period although there are signs that the rate of growth is now stabilising, according to data from Australian Property Monitors.
China's rapid industrialisation has driven commodity prices up in Australia, and the rate of growth in the housing market has mirrored that.
While the commodity prices have now stabilised, suggesting house prices in Perth will follow suit, there is other good news for those looking to invest in the Western Australia capital.
Michael McNamara of Australian Property Monitors expects a recovery in the apartments market in Australia in the second half of this year.
"That's right when we will see a demographic change, when the retired babyboomers think about moving from their houses into apartments," he added.
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