Further signs of recovery are emerging in the Perth property market, with the December quarter showing improvements in median prices, sales activity, listing levels, and average selling days, according to the Real Estate Institute of Western Australia (REIWA).
“The Perth market found its floor and stabilised in the back half of 2017,” said Hayden Groves, president of REIWA. “We now appear to be entering a recovery phase, though REIWA remains cautious about expectations of rapid growth in the next 12 months.”
Perth’s preliminary median house price increased by 1.2% to $516,000 in the December quarter. Once all sales have settled, REIWA expects the final December quarter median to hit $520,000, a notable improvement from the September quarter median of $510,000.
“On an annual basis, the Perth market is very stable. We’ve observed consistent price levels between the December 2016 and 2017 quarters which is a strong signifier the market has turned a corner,” Groves said.
The median unit price for the December quarter was $405,000, a 1.3% increase from the September quarter.
“It’s encouraging to see Perth’s house and unit medians increase over the quarter because it suggests one sector hasn’t recovered at the expense of the other,” Groves said.
Sales activity is on the rise
There were 4,946 dwelling sales in Perth in the December quarter, with the figure expected to lift to 6,700 once all sales have been settled. This is significantly higher than the September quarter sales figure.
“Traditionally, the September quarter outperforms the December quarter, but that wasn’t the case in 2017,” Groves said. “The December quarter is on track to record 14 per cent more sales than the September quarter.”
REIWA analysis indicates that the composition of sales shifted in the December quarter, with more transactions occurring above $700,000.
“We’ve observed a surge of activity in Perth’s aspirational suburbs, with buyers recognising there is good opportunity to secure a home in these areas which might have previously been considered unattainable by many. This spike in sales above $700,000 has also contributed to Perth’s median house price increasing over the quarter.”
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