While house prices fall in Sydney and Melbourne, Perth’s median house price has lifted 1.6 per cent during November, thanks to an increase in luxury property sales according to industry body the Real Estate Institute of Western Australia (REIWA).
After a fairly flat year for the Perth property market, REIWA President Damian Collins says it’s encouraging to finally see signs of growth.
“Perth’s median house price has been fairly flat throughout 2018, so it’s pleasing to see two consecutive months of median price growth as we head into the New Year.
“Our analysis shows there was a shift in the composition of sales in November, with a greater proportion of transactions occurring above $1 million than there were in October. This has contributed to the increase we’ve seen in Perth’s median house price this month,” Mr Collins said.
Knight Frank’s Head of Residential, Australia Sarah Harding says investors should make their move now.
“Now is the time to buy in Perth, with the volume of prime residential sales over the past 12 months priced between $3-10 million increasing by nearly 50 per cent, and taxes for foreign buyers to come into effect in January 2019,” she told WILLIAMS MEDIA.
Perth’s median house price increased 1.6 per cent to $518,000 during November.
The top-selling ‘burbs were Willetton, Baldivis, Canning Vale, Duncraig and Ellenbrook, while Quinns Rock, Willetton, Doubleview, Leeming and Wellard had the biggest improvement in sales volumes.
“While overall sales activity in the Perth Metro region remains subdued, numerous suburbs bucked this trend during November to record notable improvements in sales,” Mr Collins said.
Listings for sale were also five per cent higher at the end of November than they were at the end of last month, which Mr Collins says isn’t unusual for this time of year.
“It’s not unusual to observe increases in listing stock at this time of year. Sellers are returning to the market following the lull of the winter period and wanting to get in quick before the holiday season ramps up. With listing stock rising, buyers have a good supply of choice available to them, making it a very good time to buy,” Mr Collins told WILLIAMS MEDIA.
Rental market holds firm
The overall median rent prices held at $350 per week, but data from REIWA shows an increase, albeit a small $5 to the median unit rent price.
“While the overall median and median house rent were stable, pleasingly the median unit rent did increase to $330 per week during November. Additionally, when we compare the November 2018 median unit rent to three months ago, our data shows the unit rent has increased by $10 per week,” Mr Collins added.
Areas to see the biggest increase in leasing activity were Kardinya, Coolbellup, Bedford, Kelmscott and Harrisdale, while Perth, East Perth, Scarborough, South Perth and Baldivis had the highest number of leased properties.
The number of properties listed for rent also remained stable at below 7,000 – a 25 per cent decline when compared with the same time last year.
“The rapid decline in listings we’ve observed this year is a key driver behind the rental market’s recovery. It has also had a significant impact on the vacancy rate, which continues to decline and now sits at 3.3 per cent,” Mr Collins said.
