Investors and buyers alike turned to Perth last September as affordability in the city’s residential sales market improved through the month.
Real Estate Institute of Western Australia (REIWA) President Damian Collins said that the worst of the market downturn appears to be over.
With house and unit values softening marginally, Perth’s median house and unit price should settle at $505,000, and $395,000 during this time, according to REIWA’s data.
The median house price is 1.9 % lower than the June 2018 quarter median and 1% lower year-over year.
“While quarterly median figures can be more subject to stock composition changes, the fact that the annual change is only 1% lower suggests that we are at or near the bottom,” Collins said.
This interpretation almost covers the unit market, whose median is 1.3% lower than the June 2018 quarter and 2.5 % lower than the September 2017 quarter.
Bucking the trend, though, were 57 areas that saw a rise in median values. The top performing suburbs for median house price growth were Swan View, East Cannington, Como, Hillarys and Cottesloe. For the unit market, on the other hand, Maylands, Midland, Tuart Hill, Fremantle and Claremont recorded the strongest price growth.
In terms of sales activity, REIWA logged a total of 6,428 sales for the quarter, 4.9% lower than the June quarter.
Collins linked the shift to the weather changes. “It’s not uncommon to experience a decline in sales during the September quarter, with West Australians typically less inclined to search for property during winter. We tend to see activity slow during the winter months before increasing again as the weather warms up,” he said.
Notably, the share of house sales in Perth has climbed, with data showing houses now account for 74% of all sales, compared to 65 %at the same time in 2017.
Baldivis, Canning Vale, Morley, Dianella and Gosnells were named as top selling suburbs for house sales. The biggest improvement in house sales activity, meanwhile, was seen in Cooloongup, The Vines, Alexander Heights, Mirrabooka and Wattle Grove.
“It’s a good time to buy, which is reflected in the fact a higher proportion of houses are now being sold. This shift in the composition of sales (houses, units and land) indicates buyers are more inclined to purchase a house than they might have otherwise been. This can be attributed to housing affordability improving across the metro area, which has made buying a house a more attainable property purchase,” Collins noted.
Another highlight in the study was the increase in activity between the $350,000 and $500,000 price range during the September quarter. This indirectly reveals that first home buyers remain an active player in the Perth market.
13,850 properties were still up for grabs at the end of the September 2018 quarter. Stock levels across the metro area had declined 3.7% during the period
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