Perth house and unit prices increase during June quarter
By Hayden Groves – REIWA President https://reiwa.com.au/
There was positive news for Perth sellers during the June quarter, with house and unit prices increasing simultaneously.
reiwa.com data shows Perth’s median house price is expected to lift to $520,000 once all sales settle, which is 1% higher than the March 2018 quarter and 2% higher than last year’s June quarter.
The median unit price also improved, lifting to $419,500 during the quarter, which is 4.9% higher than the March 2018 quarter and 2.3% higher than the June 2017 quarter.
As prices improved during the quarter, listing levels fell, which affected sales activity. This is not entirely unexpected, with the onset of a particularly wet winter in Perth deterring some buyers. Traditionally, Perth tends to see activity slow during the colder winter months before picking up again in spring.
There were some clear bright spots in the market with numerous suburbs recording more sales this quarter than last. The suburbs with the biggest improvement in house sales were North Perth, Queens Park, Singleton, Camillo and Beldon, while West Perth, Balcatta, Rockingham, Claremont and Mount Lawley had the biggest improvement in apartment sales.
Another interesting observation from the June quarter was the composition of sales once again shifted. The reiwa.com data showed there were more house sales above the $800,000 price range than last quarter, putting upward pressure on the median. A similar result prevailed in the December 2017 quarter, with quality family homes attracting strong buyer attention in aspirational areas.
As the WA economy begins to strengthen and owner occupier loans remain the most affordable they have been in decades, buyers are recognising there is good opportunity to secure a home in areas that might have previously been considered out of reach.
In other positive news for the market, listings for sale declines 1.1% during the June 2018 quarter. It’s encouraging that stock levels continue to be absorbed, despite subdued activity levels.
The reiwa.com data also showed it was quicker to sell during the June 2018 quarter than it was in the March 2018 and June 2017 quarters, and the proportion of vendors who had to discount their asking price had declined 5% compared to last year.
With the worst of the market downturn appearing over, the improvement we’ve observed in house and unit prices, as well as in other key indicators, suggests buyer confidence is returning, which should bode well for those looking to improve their wealth through property.