The latest data from the Real Estate Institute of Western Australia shows the Perth property market is starting to stabilise, as the median house price increased to $540,000 for the three months to 31 December, up nearly one per cent on the month prior.
REIWA President Hayden Groves said an increase in the median house price along with a fall in the number of properties for sale are indicators characteristic of a market that is beginning to steady. "The total number of listings as at 31 December 2015 was 14,539, an adjustment from the November figure of 16,475, which is mostly attributable to the effect the holiday season has on seller behaviour," said Groves.
"Our latest preliminary data for the three months to December 2015 showed sales volumes sitting at 1,318, down from 1,700 in November. Whilst it’s not uncommon for sellers to withdraw their properties from sale during the festive season, we’re also seeing the impact that the removal of the First Home Owner Grant is having on sales volumes. The test will be to see how many properties come to market by the end of January."
Perth has seen higher demand in the trade-up sector of the market with properties priced between $500,000 and $600,000 and with four bedrooms taking 47 days to sell, significantly less than the market average of 60 days.
"Fewer than 50 per cent of sellers are discounting in this price range, further demonstrating the demand in the trade up market," said Groves. "In contrast, between 50-70 per cent of sellers are discounting their properties in the first home buyer’s price bracket which again highlights the softening in demand since the removal of the First Home Owner Grant for established homes."
Looking at the rental market, the overall median rent increased by $5 to $400 in December according to the latest preliminary reiwa.com data. The median house rent is now $410, an increase of 2.5 per cent, or $10, while the weekly median unit rent has increased 1.3 per cent, or $5, to $380. Rental listings in the Perth metro area have increased 15 per cent over the last three months to 9,533 as at 31 December 2015.