Values spike in recovering, boom-to-bust market
One of Australia’s popular capital cities that’s due for recovery has seen an increase in its house price during the December 2018 quarter.
According to data from the Real Estate Institute of Western Australia, Perth experienced a median house price increase of 5.2 per cent up to $510,000 over the December quarter, which REIWA president Damian Collins said was a positive sign for the new year ahead.
“While we don’t expect to see rapid growth in the Perth property market in 2019, REIWA’s outlook suggests sales volumes could start to increase this year. With house prices in Perth remaining relatively affordable and consumer confidence levels on the incline, this could translate into increased activity in 2019,” Mr Collins said.
Median dwelling prices
Median house prices saw an increase during the December quarter, which Mr Collins said managed to recover the decline from the September quarter, currently sitting at $510,000.
“Overall, prices held up fairly well during the December quarter. While buyers continue to benefit from improved affordability in the Perth market, sellers should take comfort in the fact that prices have remained relatively stable over the last 12 months,” Mr Collins said.
The total number of suburbs that experienced median price growth over the December quarter was placed at 69, with Mr Collins stating Cannington, Coodanup, Karrinyup, Beaconsfield and Hillarys as having the best price improvement.
Units did not perform as well as houses, with median unit prices declining for the quarter by 1.3 per cent down to $385,000.
Perth’s median unit price is $385,000 for the December quarter, which is down marginally on the September 2018 quarter by 1.3 per cent, with Mr Collins stating Mount Lawley, Yokine, West Leederville, Victoria Park and Mandurah as the suburbs that saw the largest price increase for the quarter.
Sales
A total of 6,417 properties were sold over the December quarter;Mr Collins said this low figure compared to the September quarter data, was to be expected due to the Christmas slow down.
“There were fewer sales recorded in all price ranges during the quarter, which is consistent with trends typically observed at this time of year,” he said.
“Despite overall activity declining, there were a few suburbs that recorded an improvement in sales activity (percentage-wise) during the December quarter.”
The top five suburbs for performance for the quarter were Parkwood, Darlington, South Fremantle, Helena Valley and Bentley, while the five suburbs with the highest sales volume were Baldivis at 52 sales, Canning Vale at 42 sales, Moreley at 41 sales, Gosnells at 37 sales and Dianella at 35 sales.
Listings
Listings were up 5 per cent for the December quarter to 14,722 properties, with Mr Collins attributing the uptick to the season, less properties withdrawing from the market when compared to last year, as well as stock being absorbed more slowly due to a reduction in sales.
Days on market
Days on market saw some improvement during the December quarter, taking seven days less to sell a property to 65 days.
“While market conditions remain challenging, sellers were seeing quicker results during the December quarter than they did in the September quarter,” Mr Collins concluded.
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