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In a sign that Perth has truly made progress along the path of recovery, current property growth across the capital city has been tracking almost twice as high as the previous cycle, according to new data.
The latest figures from the Real Estate Institute of Western Australia (REIWA) found that Perth’s average monthly growth rate is sitting at 0.9 of a percentage point — almost double the growth recorded during the capital’s last growth cycle, where it sat at 0.5 of a percentage point.
Perth’s last growth cycle lasted 30 months from 2011 to 2014, resulting in a total price growth of 15 per cent.
“We are just 12 months into this current growth cycle and prices in Perth are already up almost 11 per cent,” REIWA president Damian Collins pointed out.
“The bulk of that growth occurred in just the first six months of this year.”
In comparison, the price growth achieved in the first 12 months of the previous cycle was a much lower 6 per cent.
Winter slowdown — to worry or not?
Over June and July, Perth’s growth has subdued and dropped to 0.2 of a percentage point and 0.3 of a percentage point, respectively.
But while winter has led to a slight slowdown in growth rates, Mr Collins said that this trend is not at all unusual in Perth, having been observed in the previous growth cycle as well.
In fact, during the 2011–14 cycle, the growth rate dropped to 0.2 of a percentage point in June 2012 before picking back up again towards the end of the year.
“That growth cycle continued for a further 24 months following June 2012, which sets a good precedent for why we shouldn’t read too much into winter slowdowns,” according to Mr Collins.
Looking ahead, the president expects plenty of growth opportunities for the Perth property market, driven by low listing stock and high competition among buyers.
“Once we move into the spring selling season and the warmer weather descends, we expect that the Perth market recovery will start to accelerate again,” he concluded.
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