Perth median house price increases slightly in October

Stock image.
Stock image.

PERTH’S median house price recorded a 1 per cent increase to $510,000 in October, according to the latest reiwa.com data.

REIWA president Damian Collins said prices in Perth had started to strengthen after softening in winter.

“We’re well into spring now which has translated into renewed enthusiasm in the market with more sellers listing their property for sale and prices improving,” he said.

Mr Collins said the top performing suburbs for median house price growth during October were Roleystone, South Perth, Como, Atwell and Doubleview.

“Spearwood, Gosnells, Secret Harbour, Karrinyup and Forrestfield also performed well,” he said.

Reiwa.com data showed Perth sellers returned to the market in October, with 7.8 per cent more listings for sale than in September.

“This is a seasonal trend we’ve observed for a number of years now, even during the boom, with listings typically increasing in October and November as vendors become more motivated to sell in the lead up to Christmas,” Mr Collins said.

The 10 suburbs with the biggest percentage growth in listing stock were Kensington, Cottesloe, Glen Forrest, Greenwood, Shenton Park, Mt Hawthorn, East Fremantle, Nedlands, Brentwood and South Fremantle.

“All but two of the suburbs on this list have median house prices above the Perth Metro median, and seven of these suburbs have medians that sit above $800,000,” Mr Collins said.

“This year we’ve seen activity increase in the luxury end of the Perth market, with home owners in the area clearly recognising there is good opportunity to secure a quick sale at a competitive price in these higher-end suburbs where there is good buyer demand.”

The Perth rental market also saw improvement in October, continuing the strong form displayed in the September quarter.

Reiwa.com data showed leasing activity increased 10 per cent during the month.

The 10 suburbs to experience the biggest percentage improvement in leasing activity were West Leederville, Cannington, Southern River, Bertram, Nedlands, Palmyra, Craigie, Madeley, Secret Harbour and Morley.

Mr Collins said Perth’s median rent price remained at $350 per week, while listings for rent had declined 5 per cent to sit below 7,000 for the first time since March 2015.

“The improvement in the rental market is very encouraging,” he said.

“Prices have stabilised and are no longer declining, which is good news for landlords.

“Now would be a good time for tenants to think about securing a longer-term lease before rents inevitably rise again.”

Mr Collins said the increasing momentum in the rental market boded well for the overall market.

“Historically the sales market follows behind the rental market during a recovery,” he said.