Perth property prices gain 1.9% in December quarter

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Jan 17, 2018

Perth property prices gain 1.9% in December quarter

"We expect (Perth) market conditions to moderately and steadily improve throughout 2018," says REIWA president, Hayden Groves.

Image: 1681551 via Pixbay.

Ben Heymans of Acton Cottesloe says she is seeing evidence of stronger economic activity across Western Australia.
Image: supplied.

Hayden Groves, president of the REIWA.

Buyers are keen to get into the Perth market before it moves higher, says Bev Heymans, agent with Acton Cottesloe.

"I'm seeing a definite improvement (in the Perth market) over the last three months," she said.

"Market conditions have bottomed. We've got terribly low stock levels. And there's very strong buyer demand," said Heymans, who deals mainly in Perth's upmarket western suburbs.

"A number of my sales in the last two months have been for significantly more than the amount I appraised them for," said Heymans. "There's been a definite jump in prices. And there's a willingness of buyers to accept the market is moving."

The anticipated pick up in stock levels in spring didn't happen, she said, leaving many buyers nervous about missing out before the market moves higher. Heymans said she is seeing signs of stronger economic activity right across the Western Australian economy.

REIWA data shows Perth prices rose 1.9 per cent during the December quarter

The stronger market observed by Heymans is borne out in the latest data form the REIWA, which shows that Perth’s median house price remained steady at $525,000 in December, and rose 1.9 per cent in the December quarter.

REIWA President Hayden Groves said, “Over the past six months we have consistently observed steady house prices in Perth, which is an encouraging indicator the bottom of the market has occurred."

The median house price in three of Perth’s five sub-regions rose or was steady in December. The Central sub-region was the strongest performer.

“The median house price in the Central sub-region increased 2.1 per cent to $735,000 in December and was up significantly by 8.1 per cent when compared to September 2017,” Groves said.

Perth City recorded the largest increase median house price in December, rising 8.4 per cent to $905,000, according to reiwa.com data. South Perth/Victoria Park came in next, with a 5.1 per cent increase to $788,000.

Stirling East, Joondalup North and Serpentine-Jarrahdale also recorded solid results.

“It’s pleasing the Perth market appears to have finally turned a corner," said Groves.

"We expect market conditions to moderately and steadily improve throughout 2018, although REIWA cautions against expectations of rapid growth this year.”