While the talk is currently all about the rental market, the Perth sales market continues to be a quiet achiever with house values increasing again in October.
Perth dwelling values grew 0.6 per cent to a median of $456,267 according to the latest data from CoreLogic, and were up 0.9 per cent over the past three months and unchanged from a year ago.
Regional WA also recorded an improvement in values for the month, up 0.2 per cent, but were 1.4 per cent lower over the quarter.
REIWA president Damian Collins said in late 2019, REIWA believed the new year would see increased market activity and despite the COVID-19 pandemic, the WA property market certainly had experienced this.
“When comparing October 2020 reiwa.com data to October 2019, sales volume has increased 2.7 per cent.” he said.
“Breaking it down, houses saw a seven per cent annual increase, units increased 20.4 per cent and land decreased 27.1 per cent.
“The decrease in land sales was lessened by the higher number of sales due to the HomeBuilder grant, which certainly picked up the overall annual number of sales, however it is still pleasing to see houses and units performing quite well.”
The suburb to see the biggest spike in sales activity growth in October was Yanchep with a 133 per cent increase — predominately due to the large number of land sales.
East Victoria Park followed with a 100 per cent increase, with Cloverdale (86 per cent), Hammond Park (67 per cent) and Aveley (63 per cent) rounding out the top five.
“Not only have stock levels decreased with 10,272 properties for sale on reiwa.com, which is 27.8 per cent less than this time last year, but the median days to sell has also lowered to 25 days — three days quicker than September and 22 days quicker than October 2019,” Mr Collins said.
On the national front, values were up 0.4 per cent over the month, but 0.1 per cent lower for the quarter.
Every capital city posted a rise, with the exception of Melbourne, however that market is showing signs of improvement since the announcement that private home inspections were again permitted.
Home Value IndexHead of research Tim Lawless said nationally, market activity was on the rise and likely to improve further with another interest rate cut potentially on the horizon as the RBA meets tomorrow.
“Record low mortgage rates are a key factor supporting housing market activity,” he said.
“Historically, reductions in interest rates have provided a positive flow-through to housing demand.
“If mortgage rates move to new record lows, we expect this will further incentivise home purchasing activity. “
“The stronger rental conditions come after a long period of weakness in rental markets; dwelling rents in Perth have only increased by 0.4% over the past five years while Darwin rents are 11.4% lower than they were five years ago.
“The latest rise in rents can be attributed to the recent history of low private sector investment which has kept rental supply levels low.”
Western Suburbs Weekly
November 2, 2020 9:15AM
Western Suburbs WeeklyReal Estate