Perth’s median house price lifts in December quarter

Stock image.
Stock image.

FOLLOWING a year of ups and downs, Perth’s median house price rose 5.2 per cent to $510,000 during the December quarter 2018, putting it on par with the same period in 2017.

REIWA president Damian Collins said while activity in the overall Perth market had remained subdued during the final quarter of 2018, the improvement in the median house price was a good sign going into the new year.

“Perth’s median house price dropped below $500,000 for the first time in six years during the September quarter 2018, likely due to a shift in the composition of sales that quarter,” he said.

“Pleasingly, the median house price rebounded back to $510,000 this quarter, which is consistent with the more stable prices observed over the last 18 months.”

Reiwa.com data showed 69 Perth suburbs experienced an increase in median price during the December quarter.

Cannington, Coodanup, Karrinyup, Beaconsfield and Hillarys recorded the biggest improvements.

While the median house price rose, Perth’s median unit price was $385,000 for the quarter, down 1.3 per cent on the September quarter.

Mt Lawley, Yokine, West Leederville, Victoria Park and Mandurah saw the biggest increase in median unit price during the reporting period.

“Overall, prices held up fairly well during the December quarter,” Mr Collins said.

“While buyers continue to benefit from improved affordability in the Perth market, sellers should take comfort in the fact that prices have remained relatively stable over the last 12 months.”

There were 6,417 properties sold during the December quarter.

Mr Collins said this was below the September quarter sales figure, which was not unusual as activity tended to slow in the lead up to Christmas.

“Reiwa.com data shows there were fewer sales recorded in all price ranges during the quarter, which is consistent with trends typically observed at this time of year,” he said.

“Despite overall activity declining, there were a few suburbs that recorded an improvement in sales activity (percentage wise) during the quarter.

“The top five performing suburbs were Parkwood, Darlington, South Fremantle, Helena Valley and Bentley.”

The five suburbs with the highest volume of sales were Baldivis (52 sales), Canning Vale (42 sales), Morley (41 sales), Gosnells (37 sales) and Dianella (35 sales).

At the end of December there were 16,059 properties for sale in Perth.

Mr Collins said the December quarter listing figure was five per cent higher than the previous quarter.

“There are a number of reasons that have contributed to the increase in listing stock,” he said.

“Firstly, this is a common seasonal trend we observe, with reiwa.com data showing listings for sale are usually higher in December than September.

“Secondly, reiwa.com analysis shows there has been a reduction in the number of sellers withdrawing their property from the market this year compared to last.

“And finally, we can’t overlook the fact we’ve seen a reduction in sales, which means listing stock is being absorbed at a slower rate.”

It was seven days faster to sell a property in the December quarter than in the September quarter.

“The average time to sell in Perth has reduced to 68 days,” Mr Collins said.

“For sellers wanting a fast sale, I recommend listening to the advice of your agent and ensure your property is priced in line with buyer expectations.”