Half of Perth property sales under $500k in Feb

FIRST-home buyers were active in February with 49 per cent of sales occurring below $500,000, according to the latest Reiwa data.

“When we take a closer look, 32 per cent of sales last month were between $350,000 and $500,000, while 17 per cent were below $349,000,” president Damian Collins said.

“Traditionally, when there is a greater proportion of activity occurring below $500,000, this indicates first-home buyers are on the move.”

Mr Collins said this was a trend that had been observed for the past three months.

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The top selling suburbs in February were Baldivis, Morley, Willetton, Canning Vale and Dianella.

Reiwa.com data showed there were 13 suburbs that saw sales activity increase in February: Karrinyup, Bayswater, Hamilton Hill, Sorrento, Aveley, Waikiki, Tapping, Morley, Ocean Reef, Mullaloo, Yangebup, Rockingham and Greenfields.

“Of these 13 suburbs, eight had median house prices below the Perth median, with Karrinyup, Bayswater, Sorrento, Ocean Reef and Mullaloo the only exceptions,” Mr Collins said.

While the majority of sales in February occurred within the first-home buyer price range, the fastest selling suburbs were all from the higher end of the market.

Duncraig, Willetton, Palmyra, Doubleview and Padbury, Woodvale, Scarborough, Ocean Reef, North Perth and Sorrento were the 10 fastest selling suburbs in February, all recording average selling times significantly below the Perth average of 76 days.

“Seven of these fastest selling suburbs have median house prices above $600,000, which indicates buyers are needing to act quickly in Perth’s trade-up and luxury markets to ensure they secure the property,” Mr Collins said.

Within the rental market, 37 suburbs saw their median rent price increase during the month according to reiwa.com data.

The five suburbs to record the biggest increase in median rent (percentage wise) were Cottesloe, Shenton Park, Kingsley, East Fremantle and Redcliffe.

Mr Collins said while Perth’s overall median rent price continued to hold at $350 per week, it was encouraging to see a substantial portion of suburbs start to see positive price movement.

“Perth’s overall median rent has been stable for an unprecedented amount of time,” he said.

“With an increasing number of suburbs starting to see rents increase, it’s only a matter of time before the Perth median rent follows suit, which will be a welcome development for landlords.”

Reiwa.com data showed 75 suburbs recorded an increase in leasing activity, with Bull Creek, Queens Park, Parkwood, Wilson and Willetton the top performers for the month.

“On an annual basis, leasing activity in the overall Perth market is up 6 per cent compared to last February,” Mr Collins said.

“As we head into March, which is traditionally one of the busiest months of the year for the rental market, we should see tenant activity continue to build, creating more competition in the market and putting upward pressure on rents.”