Joondalup
(08) 9300 2283
Unit 4, 80 Grand Boulevard
Joondalup WA 6027

Perth Property Market Remains Stable

07 May 2016
Perth first home buyers are making the most of the opportunity that the current real estate market presents, with the latest figures for the March 2016 quarter showing almost half the total sale transactions were less than $420,000. 

REIWA President Hayden Groves said the latest preliminary data for the March quarter shows that now is a good time for first home buyers, as well as those looking to trade up, to make a move. 

“It’s encouraging to see an active first home owner market with 45 per cent of house transactions in the three months to March being in the more affordable sector of the market. This shows that there are more affordable options available,” Mr Groves said. 

“As a result, the median price is down for the quarter and I encourage buyers to act now and take advantage of the excellent buying conditions.” 

Houses and units

Perth’s preliminary median house price came in at $520,000 for the March 2016 quarter. 

“The median house price is down 3.7 per cent on the revised December 2015 quarterly median of $540,000 and with the high number of transactions in the lower end of the market, this comes as no surprise,” Mr Groves said. 

The median price for units remained stable with almost no change, coming in at $435,000, compared to $436,000 for the previous quarter. 

Land

The preliminary median land price has increased to $305,000 for the three months to March, up 8.9 per cent on the December quarter. Annually, the land median price has jumped 13.1 per cent. 

Mr Groves said further analysis of the data showed that the majority of land sales, around 42 per cent, were smaller lots between 320 and 499 square metres with a median of $309,000. 

“When we break down the figures, we can see a higher demand for smaller lots and that people are paying a premium for them, particularly in inner urban areas.” 

“We’re seeing a shift from people wanting a larger block to now seeking something that’s more manageable and better suited to their busier lifestyles,” Mr Groves said. 

Listings

Listings for sale across houses, units and land increased six per cent to 15,277 in the March quarter. 

“We saw listings drop off in the December quarter which is normal for that time of year so it’s not surprising to see an increase, however, listings continue to remain above the long term average. 

“Healthy stock levels give buyers plenty of choice and the opportunity to find their ideal property,” Mr Groves said. 

Sales volumes

Preliminary sales volumes for the three months to March are at 5,852, down from 8,798 in the December 2015 quarter. 

“Sales have slowed across the Perth metro region, however, we hope to see the seasonal increase that the autumn months traditionally bring,” Mr Groves said. 

Selling days

Those selling their property can expect for it to take a little longer to sell with the average selling days for a house in the Perth metro area increasing to 65 days, up six days on the previous quarter and 10 days on the same period last year. 

“With buyers being presented with plenty of choice, it’s taking sellers a little longer to secure a deal so it’s important they price their property right for the current market conditions from the start to avoid unnecessary discounting,” Mr Groves said. 

Regional WA

Regional WA has bucked the trend seen in the Perth metro area reporting increases to its median house, unit and land prices for the March 2016 quarter as well as on an annual basis. 

“Pleasingly, regional areas of the state are showing positive signs with the median house price at $380,000 for the three months to March, up 2.3 per cent on the previous quarter and up 3.8 per cent for the year. 

“The median unit price has jumped up 7.1 per cent for the quarter to $340,000 so it’s safe to say that the regions are holding up well,” Mr Groves said. 

Rental market

Perth’s overall median rent price came in at $395 per week for the three months to March which equates to $400 for houses and $380 for units. 

Mr Groves said that the overall median rent is down by $5 a week on the previous quarter which is good news for tenants. 

“We saw an increase in the uptake of rentals with 15 per cent more properties leased in the March quarter. 

“The uplift in properties leased in the first quarter of the year can be partially attributed to the start of the university calendar and students needing to secure accommodation, “Mr Groves said. 

The number of overall listings has increased in the Perth metro area by five per cent to 9,658.  << back to news articles