Slight decline in median house and unit prices in September quarter: REIWA

Stock image.
Stock image.

THE Perth property market continues to provide favourable conditions for buyers and investors according to REIWA, with the latest data showing house and unit prices softened marginally in the September quarter 2018.

Perth’s median house price is expected to settle at $505,000 for the reporting period.

“This is 1.9 per cent lower than the June quarter median and 1 per cent lower than last year’s September quarter,” REIWA president Damian Collins said.

“It was a similar story for the unit market, with the median expected to settle at $395,000, which is 1.3 per cent lower than the June quarter and 2.5 per cent lower than the September quarter 2017.”

While the overall market experienced a decline in median house price during the quarter, 57 suburbs recorded price growth.

“The top performing suburbs for median house price growth were Swan View, East Cannington, Como, Hillarys and Cottesloe,” Mr Collins said.

“In the unit market, Maylands, Midland, Tuart Hill, Fremantle and Claremont were the suburbs with the strongest price growth.”

There were fewer sales in the September quarter than during the June quarter.

Reiwa.com data showed 6,428 sales, down 4.9 per cent.

“It’s not uncommon to experience a decline in sales during the September quarter, with West Australians typically less inclined to search for property during winter,” Mr Collins said.

“We tend to see activity slow during the winter months before increasing again as the weather warms up.”

The proportion of house sales in Perth increased, with houses comprising 74 per cent of all sales, compared to 65 per cent at the same time last year.

Perth’s top selling suburbs for house sales during the quarter were Baldivis, Canning Vale, Morley, Dianella and Gosnells, while the suburbs to record the biggest improvement in house sales activity were Cooloongup, The Vines, Alexander Heights, Mirrabooka and Wattle Grove.

“This shift in the composition of sales (houses, units and land) indicates buyers are more inclined to purchase a house than they might have otherwise been,” Mr Collins said.

“This can be attributed to housing affordability improving across the metro area, which has made buying a house a more attainable property purchase.

“We’ve also seen an increase in activity between the $350,000 and $500,000 price range during the September quarter, which is pleasing as it indicates first-home buyers remain an active component of the Perth market.”

There were 13,850 properties for sale in Perth at the end of the September 2018 quarter, a decline of 3.7 per cent on the previous quarter.

“It’s pleasing that, although there were fewer sales this quarter, listing stock continues to be absorbed,” Mr Collins said.

“This is the third consecutive quarter we’ve seen listings for sale decline, which is a positive step forward in the market’s recovery.”