Perth Monthly Market Wrap
by Brett White
The status of the market for Perth has been static for the past year. According to Real Estate Institute of Western Australia (REIWA) the real estate market has seen a very small change in the right direction. This minimal increase was due to the rentals in Perth rising and first home buyers grabbing the opportunity as they feel that there will be an increase in prices for properties soon.
According to REIWA, Perth’s Interim meridian house price has dropped by 1.9 per cent to $510,000 but the market is expected to increase to $517,000 after all sales have been settled. This is a 0.4 per cent increase compared to the numbers same time last year showing stability in the residential market. But in terms of sales volumes, there was a decrease during the last quarter. House sales dropped by 4.7 per cent to 5,336 and averaged at 67 days before they become sold, seven days longer than the average in the previous quarter. Unit sales also dropped by 9.5 per cent to 1,194 and averaged 5 days longer to trade at 83 selling days. Vacant land sales have also dropped dramatically, it has decreased by 44 per cent.
Despite this decrease in sales, Perth’s upgrader market performed very well specifically with the western suburbs. There has been and increasing demand for prestige properties from residents. The pricing for these prestige properties range from the low to mid $1 million range. The price varies depending on some factors like lot size and the view it offers.
In summary, Perth’s market has been increasing at a slow pace but has proven to be stable over last year. Perth is also expected to do well in the next quarter specifically in property sales because of aspiring residents wanting to enter the prestige market and Part-time jobs increasing to more that 34% of the workforce in Western Australia. This will result in wage growth and further consumer confidence which will definitely increase property sales in the area.
Source: www.htw.com.au
