Perth property market makes strong gains in February

Perth property market makes strong gains in February

BUYERS have returned to the market after the festive season, with data showing February sales volumes were up 8 per cent compared to January.

Canning Vale was Perth’s top selling suburb for house sales, followed by Duncraig and then Ellenbrook.

Other well-performing suburbs were Baldivis, Willetton, Ballajura, Hamilton Hill and Thornlie.

The number of listings for sale also increased, up a small 2 per cent.

“It’s not unusual to see listings increase in the first couple of months of the year after the Christmas and New Year period,” REIWA president Hayden Groves said.

“Importantly, while purchasers still have adequate properties to choose from, stock levels are not increasing at a particularly high rate.

“The number of properties for sale in February this year is actually 2 per cent lower than February 2016, which indicates stock levels have peaked for the time being.”

While the number of sales increased, Perth’s median house price decreased in the three months to February, dropping slightly to $518,000.

“Although we experienced a noteworthy eight per cent increase in sales activity, the 1.3 per cent shift in the median can be attributed to a change in the composition of sales, with more transactions occurring in the lower end of the market,” Mr Groves said.

Activity in the rental market declined over the month, however it increased 5 per cent in the three months to February.

“Although leasing volumes were down last month compared to January, tenants remain very active right now,” Mr Groves said.

“And in fact, if we compare February’s leasing levels to the same time in 2016, activity is actually up seven per cent on an annual basis.”

Perth’s overall median rent price was stable in the three months to February, holding steady at $360 per week.

“In terms of houses and units, this broke down to $375 per week for houses and $340 per week for units,” Mr Groves said.

“Tenants remain the beneficiary of Perth’s rental market, however investors should be encouraged that prices have held up well over the last three months and activity has increased.”

The total number of rental listings in Perth declined by 1 per cent over the month and were now 12 per cent lower than they were in November 2016.

“There’s no denying listings are higher than we’re used to, but the fact rental stock is no longer increasing at the frequency it once was is an encouraging sign,” Mr Groves said.

“It suggests levels have peaked and are now stabilising.”