Perth’s median house price increased 5.2 per cent to $510,000 during the December 2018 quarter.
REIWA President Damian Collins said while activity in the overall Perth market had remained subdued during the final quarter of 2018, the improvement in Perth’s median house price was a good sign entering into the New Year.
“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 house and unit pricereiwa.com data* shows Perth’s median house price increased significantly during the December quarter, putting it back on par with the December 2017 quarter median.
“Perth’s median house price dropped below $500,000 for the first time in six years during the September 2018 quarter, likely due to a shift in the composition of sales that quarter. Pleasingly, the median house price rebounded back to $510,000 this quarter, which is consistent with the more stable prices observed over the last 18 months,” Mr Collins said.
reiwa.com analysis shows 69 suburbs in Perth experienced an increase in median price during the December 2018 quarter.
“The suburbs to record the biggest improvement in median house price were Cannington, Coodanup, Karrinyup, Beaconsfield and Hillarys,” Mr Collins said.
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.
“Mount Lawley, Yokine, West Leederville, Victoria Park and Mandurah saw the biggest increase in median unit price during the quarter,” Mr Collins said.
“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.”
Sales activityThere were 6,417 properties sold during the December quarter.
Mr Collins said this figure was below the September quarter sales figure, which wasn’t unusual given activity tended to slow in the lead up to Christmas.
“reiwa.com data shows there were fewer sales recorded in all price ranges during the quarter, which is consistent with trends typically observed at this time of year.
“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 performing suburbs were Parkwood, Darlington, South Fremantle, Helena Valley and Bentley,” Mr Collins said.
The five suburbs with the highest volume of sales during the December quarter were Baldivis (52 sales), Canning Vale (42 sales), Morley (41 sales), Gosnells (37 sales) and Dianella (35 sales).
Listings for saleThere were 16,059 properties for sale in Perth at the end of December.
Mr Collins said the December quarter listing figure was up five per cent on the September quarter.
“There are a number of reasons that have contributed to the increase in listing stock. Firstly, this is a common seasonal trend we observe, with reiwa.com data showing listings for sale are usually higher in December than September.
“Secondly, reiwa.com analysis shows there has been a reduction in the number of sellers withdrawing their property from the market this year compared to last. And finally, we can’t overlook the fact we’ve seen a reduction in sales, which means listing stock is being absorbed at a slower rate,” Mr Collins said.
Average selling daysIt was seven days faster to sell a property in the December quarter than in the September quarter.
“The average time to sell in Perth has reduced to 68 days. While market conditions remain challenging, sellers were seeing quicker results during the December quarter than they did in the September quarter.
“For sellers wanting a fast sale, I recommend listening to the advice of your REIWA agent and ensure your property is priced in line with buyer expectations,” Mr Collins said.
For more information about your local area, visit the WA market page.
*reiwa.com data for Perth has been expanded to include the Mandurah and Pinjarra regions to bring the Institute’s data source in line with industry standards, as defined by the Australian Statistical Geography Standard 2016 published by the Australian Bureau of Statistics.