Perth’s median house prices increased by 1 per cent in October, while rental prices remained stable.
According to data released today by the Real Estate Institute of Western Australia (REIWA), the median house price escalated to $510,000 during the month and the median rent price stayed at $350 per week.
The top-performing suburbs for median house price were Roleystone, South Perth, Como, Atwell and Doubleview. Spearwood, Gosnells, Secret Harbour, Karrinyup and Forrestfield also performed well.
The rental market also continued in good form throughout the month, increasing by 10 per cent. The suburbs with the biggest growth in lease activity (percentage-wise) included West Leederville, Cannington, Southern River, Bertram, Nedlands, Palmyra, Craigie, Madeley, Secret Harbour and Morley.
“With Perth’s rental market gaining momentum, this bodes well for the overall market as historically the sales market follows behind the rental market during a recovery,” REIWA president Damian Collins said.
However, listings for rent overall dropped by 5 per cent to fall below 7,000 for the first time since March 2015.
The REIWA also found there was a significant increase in Perth sellers going to market throughout October, with a 7.8 per cent increase in stock listings. The suburbs with the strongest growth (percentage-wise) were Kensington, Cottesloe, Glen Forrest, Greenwood, Shenton Park, Mount Hawthorn, East Fremantle, Nedlands, Brentwood and South Fremantle.
“This is a seasonal trend that we’ve observed for a number of years now, even during the boom, with listings typically increasing in October and November as vendors become more motivated to sell in the lead-up to Christmas,” Mr Collins said.
“All but two of the suburbs on this list have median house prices above the Perth Metro median, and seven of these suburbs have medians that sit above $800,000. This year, we’ve seen activity increase in the luxury end of the Perth market, with home owners in the area clearly recognising there is good opportunity to secure a quick sale at a competitive price in these higher-end suburbs where there is good buyer demand.”
The findings come as CoreLogic released its Hedonic Home Value Index, which found that house values in Greater Perth actually fell by 0.8 of a percentage point throughout October.
The REIWA said that the discrepancy between the two reports is due to CoreLogic’s index capturing both houses that sold and failed to sell during the month, while the REIWA focuses on actual sales.
“The findings in CoreLogic’s Hedonic Home Value Index reiterate the fact that Perth’s property market continues to travel along the bottom. However, with the worst of the downturn behind us, we should see an uplift as buyers and investors take advantage of current market conditions,” Mr Collins said.