September quarter data from the REIWA shows the Perth property market is continuing to stabilise, with steady or improved levels across most key market indicators.

REIWA President Hayden Groves said conditions in the September quarter mirrored those in the June quarter, indicating that the Perth property market may not decline further.

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“We’ve observed six months of stable conditions, with both the June and September quarters posting consistent results. Historically, before a market improves there is a sustained period of level stock, sales activity and house prices, which is what we appear to be witnessing at the moment,” Mr Groves said.

Simon McGrath of Abel McGrath Claremont told SCHWARTZWLLIAMS he is beginning to see slight price increases in Perth's western suburbs.

Demand has been steady he said, but supply is down, and that is causing prices to step higher.

McGrath said he sold a house in Floreat recently for $1.535 million. The neighbour bought the house, and had earlier declined to buy the home for $1.35 million. 

"He didn't know it was a good buy at $1.35 million," said McGrath, saying the transaction showed that prices were beginning to move higher but it was taking time for some in the market to catch up.

McGrath said that while Perth's western suburbs, with good schools, leafy streets, and train, is faring well, he cautioned that some Perth suburbs are still "suffering".

Median house price

The preliminary median house price for the September quarter was $499,000.

“Once all sales have settled, we expect the revised September quarter median to lift to around $515,000, an increase on the June quarter’s $510,000 median,” said Groves.

REIWA analysis shows Perth’s median house price experienced a marginal one per cent decline when compared with the same period last year, "but the rate of decline is slower than it was two years ago," said Groves.

"Between the September quarters in 2015 and 2016, Perth’s quarterly median house price declined by 2.3 per cent," he said.

Median unit price

Perth’s preliminary median unit price is $395,000 for the three months to September, with the REIWA expecting this figure to rise to $407,000 once all sales have settled, putting it on par with the June quarter median.

“It bodes well for the market that Perth’s house and unit prices are exhibiting signs of recovery simultaneously,” said Groves.

Sales activity

There were 6,960 property sales in Western Australia in the September quarter, with the final figure expected to rise to around 8,000

“In the Perth metro region, property sales increased in the September quarter. Once all transactions have settled, we expect sales to exceed 6,000, up from 5,730 in June quarter," he said.

Despite the soft market conditions, the projected sales figure for the quarter is close to the 10 year quarterly average of 6,780.

"It’s a testament to the strength of our local market that it has held up relatively well through the downturn,” Groves said.

Listings for sale

Stock levels in Perth continue to decline, falling from 14,071 at the end of June 2017 to 13,043 at the end of September.

After a prolonged period of rising listings across the metro area, it's pleasing to see substantial declines occurring, said Groves.

“The September quarter listing figure is 7.3 per cent lower than the figure recorded at the end of June and 7.9 per cent lower than the figure recorded at the end of September 2016," he said.

“With sales activity trending up and listing levels declining, this has improved net demand across the metro area and contributed to the healthy sales figures we’ve seen this quarter,” Groves said.

Average selling days and discounting

It took on average 70 days to sell a house in Perth in the September quarter.

“This quarter’s average selling day figure is two days slower than it was in the June quarter, but two days faster than it was in the September quarter 2016,” said Groves.

The proportion of vendors required to discount their asking price improved to 53.4 per cent in the September quarter. This is 1.8 per cent less than the June quarter and 4.5 per cent less than the same time last year.

“It’s pleasing to see fewer sellers needing to reduce their asking price," said Groves.

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