Stable conditions were recorded in the Perth property market over the September quarter, with preliminary quarterly data indicating steady or improved levels across the majority of key market indicators, according to the Real Estate Institute of Western Australia (REIWA).
Conditions in the September quarter mirrored those experienced in the June quarter, noted REIWA president Hayden Groves.
“We’ve observed six months of stable conditions, with both the June and September quarters posting consistent results. Historically, before a market improves there is a sustained period of level stock, sales activity and house prices, which is what we appear to be witnessing at the moment,” he said.
Significant growth was noted in Perth’s median house price, which came in at $499,000 for the September quarter.
Once all sales have been settled, Groves expects the revised September quarter median to rise to approximately $515,000, a bump up from the June quarter median of $510,000.
Perth’s median house price only experienced a marginal 1% decline when compared to the same period last year.
“Comparatively, between the September quarters in 2015 and 2016, Perth’s quarterly median house price declined by 2.3 per cent,” Groves said. “These longer term trends are a good indicator as to the positive direction the market is headed, as the rate of decline is slower than it was two years ago.”
Stability was also noted in Perth’s preliminary median unit price, which came in at $395,000 for the three months to September. REIWA projects this figure to lift to about $407,000 once all sales have been settled, placing it on par with the June quarter median.
Property sales were also showing signs of stability, with 6,960 preliminary sales reported in Western Australia over the September quarter. Once all sales have been settled, this preliminary figure is expected to lift to about 8,000.
“In the Perth metro region, property sales increased in the September quarter. Once all transactions have settled, we expect sales to exceed 6000, up from 5,730 in the June quarter,” Groves said.
“REIWA analysis shows despite softer market conditions, this quarter’s projected sales figure is not far off the 10 year quarterly average of 6,780. Given the challenging economic factors facing the state, it’s a testament to the strength of our local market that it has held up relatively well through the downturn.”
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