Third month of positive news for Perth’s property market
Perth’s housing market is showing further signs of recovery after CoreLogic’s home value index has increased or remained stable for a third consecutive month, with January recording a 0.1 per cent increase.
REIWA President Damian Collins said it is pleasing to see prices stabilise or increase for three months in a row. In addition, prices have also risen 0.6 per cent since bottoming in October 2019.
Median sale price
“Breaking it down into houses and units, reiwa.com data shows that the median sale price remains at $480,000 and $375,000 respectively for January,” Mr Collins said.
“reiwa.com data showed there was a shift in composition of sales in January compared to the previous year. A greater proportion of transactions (approximately 30 per cent of all sales) occurred below $350,000 which could suggest that first home buyers are making the most of the lower interest rates.”
Overall Perth sales activity and listings for sale both remained stable in January, yet one in three suburbs bucked this trend to record notable improvements in sales.
“The top suburbs by sales activity growth include Leeming, Dianella, Woodvale, Ellenbrook and Secret Harbour, while Halls Head, Canning Vale, Baldivis, Secret Harbour and Dianella had the highest number of sales for the month,” Mr Collins said.
“Feedback from REIWA agents on the ground is fairly positive, with good quality stock being snapped up quicker, and the amount sellers are discounting reducing to 6.4 per cent. This is a positive sign for the median sale price and if this continues, we should start seeing a gradual increase in prices in the coming months.”
Perth rental market
Perth’s overall median rent price continues to hold at $350 per week however reiwa.com data shows there was a 26 per cent increase in leasing activity in January.
“Leasing activity typically increases at the start of the year, whether it is part of a tenants new year's resolution to find a new home or simply getting back into a routine after the festive period, which is why we have seen the jump in leasing to 4,608 in January,” Mr Collins said.
“The five suburbs which experienced the biggest increase in leasing activity during January were Como, Southern River, Kardinya, Waikiki and Safety Bay while Baldivis, Canning Vale, Halls Head, Clarkson and Butler had the most number of properties leased."
Listings for rent
reiwa.com data shows there were 5,840 properties for rent at the end of January.
“While rental listings were up four per cent compared to December 2019, they have decreased 13 per cent on an annual basis. The decline in listings we have observed over the last 12 months has had a significant impact on the vacancy rate which continues to sit at a low of 2.4 per cent,” Mr Collins said.
Suburbs such as Baldivis, Canning Vale, Dianella, Halls Head and Secret Harbour are performing well across both the sales and rental market in January.
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