The Perth property market put in a strong performance during the March quarter. House sales increased by 0.5 per cent to $517,000 while the median unit price remained the same at $407,000.

REIWA President Hayden Groves told WILLIAMS MEDIA the Perth property market is on the upswing.

"The Perth property market has definitely passed the bottom with REIWA members reporting significant uptick in sale activity for the March quarter comparative to the previous quarter and the March quarter last year," said Groves.

"Buyers are beginning to compete for quality family homes with multiple offers/bids on homes in aspirational suburbs in particular. Prices are stable with mild improvements anticipated by the year's end," he said.

Groves attributes this trend to the, "unusual 'two-speed' market with trade-up buyers active, competing and pushing up values whereas sub $500,000 homes in outlying areas struggle with over-supply and soft demand," he said. 

REIWA data shows house sales (461) were far higher than unit sales (95). 

"This is partly because Perth is traditionally an urban environment dominated by detached housing with meaningful supply of apartment homes only really emerging over the past 15 years or so. Also, we're over-supplied with units at present with investor activity soft due to above-average vacancy rates and investors cautious about capital growth potential for the apartment sector," he said.

Groves says the consensus among buyers is mixed, but cautious. 

"Trade-up family home buyers are lamenting they didn't buy six months ago when the bottom of the market was apparent. Sellers who've been considering selling over the past few years are now cautious about coming to market too soon in anticipation of selling for more in the short-term future, especially down-sizers looking to maximise their capital-gains-tax-free benefit.

"Investors are likely to remain cautious until they see tangible growth which is likely to be towards the end of this year," he said. 

Read more about the Perth property market:

Perth real estate: "We should just hang in there" says David Arnold of Ethos Property

Affordable housing south of Perth is the key to real estate turnaround

Perth rental market subdued in June quarter