While activity in the overall Perth market has remained subdued, the improvement in Perth’s median house price during the December quarter 2018 is a good sign entering into the new year, the REIWA has said.
“While we don’t expect to see rapid growth in the Perth property market in 2019, REIWA’s outlook suggests sales volumes could start to increase this year,” said REIWA president Damian Collins.
“With house prices in Perth remaining relatively affordable and consumer confidence levels on the incline, this could translate into increased activity in 2019.”
Mr Collins said that Perth’s median house price increased by 5.2 per cent to $510,000 during the December 2018 quarter.
REIWA data showed Perth’s median house price is back on par with the December 2017 quarter median.
“Perth’s median house price dropped below $500,000 for the first time in six years during the September 2018 quarter, likely due to a shift in the composition of sales that quarter,” Mr Collins said.
“Pleasingly, the median house price rebounded back to $510,000 this quarter, which is consistent with the more stable prices observed over the last 18 months.”
Analysis showed 69 suburbs in Perth experienced an increase in median price during the December 2018 quarter.
“The suburbs to record the biggest improvement in median house price were Cannington, Coodanup, Karrinyup, Beaconsfield and Hillarys,” Mr Collins said.
Perth’s median unit price is $385,000 for the December quarter, which is down marginally on the September 2018 quarter by 1.3 per cent.
“Mount Lawley, Yokine, West Leederville, Victoria Park and Mandurah saw the biggest increase in median unit price during the quarter,” Mr Collins said.
“Overall, prices held up fairly well during the December quarter. While buyers continue to benefit from improved affordability in the Perth market, sellers should take comfort in the fact that prices have remained relatively stable over the last 12 months.”
REIWA data also showed there were 6,417 properties sold during the December quarter.
Mr Collins said that this figure was below the September quarter sales figure, which wasn’t unusual given activity tended to slow in the lead-up to Christmas.
“There were fewer sales recorded in all price ranges during the quarter, which is consistent with trends typically observed at this time of year.
“Despite overall activity declining, there were a few suburbs that recorded an improvement in sales activity, percentage-wise, during the December quarter. The top five performing suburbs were Parkwood, Darlington, South Fremantle, Helena Valley and Bentley,” Mr Collins said.
He said that the five suburbs with the highest volume of sales during the December quarter were Baldivis (52 sales), Canning Vale (42 sales), Morley (41 sales), Gosnells (37 sales) and Dianella (35 sales).
The data found that there were 14,772 properties for sale in Perth at the end of December.
Mr Collins said that the December quarter listing figure was up by 5 per cent on the September quarter.
“There are a number of reasons that have contributed to the increase in listing stock. Firstly, this is a common seasonal trend we observe, with listings for sale usually higher in December than September.
“Secondly, analysis shows there has been a reduction in the number of sellers withdrawing their property from the market this year compared to last. And finally, we can’t overlook the fact we’ve seen a reduction in sales, which means listing stock is being absorbed at a slower rate.”
A full week
The REIWA also reported that it was seven days faster to sell a property in the December quarter than in the September quarter.
“The average time to sell in Perth has reduced to 65 days. While market conditions remain challenging, sellers were seeing quicker results during the December quarter than they did in the September quarter,” Mr Collins said.
“For sellers wanting a fast sale, I recommend listening to the advice of your REIWA agent and ensure your property is priced in line with buyer expectations.”