PERTH property market conditions remained soft in August with the median house price declining again and the median rent stable.
According to Reiwa, the median house price dropped from $490,000 last month to $486,000 and the number of properties listed for sale was at its lowest level since late 2014.
Reiwa president Damian Collins said Perth’s residential sales market slightly softened in August across all aspects, however the rate of price decline appeared to be slowing.
“CoreLogic’s latest home value index shows dwelling values in Perth declined for another month to 0.5 per cent in August, yet the rate of decline is slowing, which is a positive indication that prices in Perth may be approaching the bottom,” he said.
Looking at previous months, Corelogic data showed prices also declined 0.5 per cent in July, 0.7 per cent in June and 1.0 per cent in May.
While listings for sale were down 8 per cent to 13, 831 over the month, there were a number of suburbs that showed a significant reduction in listings (percentage wise) for August, demonstrating their popularity.
“Topping the list was Churchlands with the largest reduction, which was closely followed by Sinagra, Waterford, Shenton Park and Greenwood,” Mr Collins said.
Reiwa.com data showed the number of properties sold dropped by 7 per cent during the month.
“The further slowdown in the market may suggest we are not yet seeing the full effects of the recent changes made by APRA, the Reserve Bank of Australia’s rate cuts or Keystart initiative,” Mr Collins said.
“Hopefully in time we will see an increase in the number of buyers, otherwise there will be a need for further action by the State Government in relation to land taxes and stamp duty.”
The number of properties for rent also fell in August to the lowest level in nearly five years.
There was a 3 per cent reduction in rental listing stock to 6599 and a 5 per cent decrease in leasing activity over the month.
“In addition to the decline we’ve seen during the month, listing stock are now 17 per cent lower than they were a year ago,” Mr Collins said.
The top suburbs that have seen a significant decrease in rental listings included Alkimos with the largest reduction, followed by Connolly, Willagee, Shoalwater and Greenwood.
“While we have seen Perth’s rental market gaining momentum over recent months, we are now starting to see it stabilise with the overall median rent price remaining at $350 per week,” Mr Collins said.
“Typically, as we move into these warmer spring months, the property market should see an overall uplift in activity – something we are keen to keep an eye on in the coming months.”