Perth’s median house price has hit a new record of $510,000, according to the Real Estate Institute of Western Australia’s (REIWA) March quarter data.
The previous peak was $505,000 in the March quarter of 2010.
REIWA president David Airey said there had been a two per cent increase on the median price from the December quarter, which had been driven by an increased turnover and more sales activity above the median price.
“Our preliminary data for the March quarter show that while the proportion of sales under $500,000 has fallen there was a marked increase in sales between $500,000 and $1 million,” Mr Airey said.
REIWA’s data showed that homes selling for $600,000 to $700,000 and those between $800,000 and $1 million made up 20 per cent of all sales during the quarter.
“The $600,000 to $700,000 range was the most dominant price point above the median during this period and is a healthy illustration of consumer confidence through trade-up activity,” Mr Airey said.
Despite a general downturn of sales under $500,000, homes sold for between $400,000 and $450,000 showed a slight increase in turnover largely driven by strong first home buyer activity.
Flats, units, apartments and villas were more common in central Perth and indicated a 10 per cent rise in sales during the quarter, which suggested that there was an upturn with investor activity.
Suburbs closer to the CBD also saw stronger sales activity during the quarter and contributed to the overall life in the market median, according to Mr Airey.
REIWA data showed listings at around 8,500 properties after starting the year at 9,300.
“The March quarter results show a buoyant market returning to more normal conditions on the back of solid population growth and a strong state economy,” Mr Airey said.