The suburbs leading the recovery: signs the Perth property market is on the turn
ACROSS the board increases in sales volumes, lower stock levels in both the sales and rental market and more activity in trade-ups herald an improvement in the WA property market according to REIWA president Hayden Groves.
“I think the market has been at the bottom for the last six to nine months, and is starting to transition,” he said.
“We’re seeing more sales, but downward pressure on listing stock despite the fact that spring is here, and for the first time in a number of years the supply of rental stock is falling at the same time.”
Mr Groves said the conditions had created an interesting situation, typical of a transitional market.
“There’s been downward pressure on prices, demand is still pretty soft as is the WA economy, so if people haven’t had to sell, they’ve held off; that’s why sales volumes have been so low.” he said.
“Suddenly, in some areas, supply levels have tightened to such an extent that it’s putting upward pressure on prices.”
Several suburbs across Perth have already recorded strong median house price growth according to the latest data from reiwa.com.
Cottesloe recorded the highest growth at 18.2 per cent in the 12 months to June, followed by Attadale (17.7 per cent) and Salter Point (17.5 per cent).
Two Albany suburbs were also among REIWA’s top 10 with Lower King recording 12.7 per cent median house price growth and Yakamia increasing by 11.9 per cent.
Most of the growth was across Perth suburbs in the $800,000 – $1.2 million price bracket, reflecting greater activity in the trade-up market.
Mr Groves said when this section of the market started to move, the median house price would start to rise.
“I expected to see the Perth median house price increase in the June quarter as a result of the greater activity at the higher end of the market, but that didn’t eventuate.” he said.
“I’m more cautious to call it now but would not be surprised to see the median price rise in the September quarter, through to December and March next year.”