Finally some good news for the Perth property market. REIWA has reported increases in median prices, sales activity, listing levels and average selling days recorded for the December quarter.
The latest figures from REIWA painted an optimistic picture for the capital city, with all key indicators showing improvement.
REIWA President, Hayden Groves, said these figures “boded well for Perth”.
“The Perth market found its floor and stabilised in the back half of 2017.
“We now appear to be entering a recovery phase, though REIWA remains cautious about expectations of rapid growth in the next 12 months,” said Mr Groves.
How the Perth property market got its groove back
- Median house and unit prices
The median house prices for the Perth December quarter 2017 increased 1.2 per cent to $516,000. Perth Unit prices also rose to $405,000, an increase of 1.3 per cent compared to the September quarter.
Mr Groves expects that once all sales have settled, the final December quarter median will be lifted to $520,000. This is a “notable improvement on the September quarter median of $510,000.”
“On an annual basis, the Perth market is very stable. We’ve observed consistent price levels between the December 2016 and 2017 quarters which is a strong signifier the market has turned a corner.
“It’s encouraging to see Perth’s house and unit medians increase over the quarter because it suggests one sector hasn’t recovered at the expense of the other,” said Mr Groves.
- Sales activity
REIWA data found that the “composition of sales” shifted in the December quarter, with an increase of sales occurring above $700,000. Further, there were 4,946 dwelling sales in Perth throughout this quarter, and it was expected to rise to 6,700 once all sales were settled.
“Traditionally, the September quarter outperforms the December quarter,” said Mr Groves.
“But that wasn’t the case in 2017. The December quarter is on track to record 14 per cent more sales than the September quarter.
“We’ve observed a surge of activity in Perth’s aspirational suburbs, with buyers recognising there is good opportunity to secure a home in these areas which might have previously been considered unattainable by many.
“This spike in sales above $700,000 has also contributed to Perth’s median house price increasing over the quarter,” said Mr Groves.
- Listings for sale
REIWA data also found that there were 13,088 listings for sale in Perth in the December quarter. These figures are “on par” with September quarter figures, and down six per cent from the December 2016 quarter.
“There were 800 fewer listings in Perth at the end of 2017 than there was in 2016 and some 1,300 less than there were at the same time 2015,” said Mr Groves.
“We have consistently seen stock levels decline over the last two years as the market trends towards parity.
“Declining listing levels combined with notable improvements in sales activity has helped restore net-demand.
“With buyer activity increasing, stock levels are being absorbed faster,” said Mr Groves.
- Average selling days
REIWA data also reported that it was 10 days faster to sell for in the December quarter than the September quarter for Perth. The average sale window fell to 60 days.
“It’s been two years since it was this quick to sell in Perth,” explained Mr Groves.
“The combination of sellers’ preparedness to meet the market and buyer appetite for well-priced property has significantly shortened days-on-market”.