Perth housing prices tipped to leap 20pc

WA investors face a rollercoaster few years with a leading business forecaster predicting Perth house prices will surge almost 20 per cent by 2014.

At the same time, one of the world's most important banks has warned that a second global recession could hit the world economy. The bullish house price prediction by BIS Shrapnel defies the prognosis by many analysts that the malaise which has beset WA property for the past three years will continue for several more years.

The median house price in Perth has fallen 10 per cent since March 2007 and is now $480,000. BIS Shrapnel will release a report today which says the median price will climb about 6 per cent a year to $570,000 by mid-2014.

Source: The West Australian