THERE is positive news for the Perth property market, with dwelling values increasing 0.4 per cent in November according to the latest data from CoreLogic.
It is the first month-on-month rise since the downtrend took a pause in early 2018.
Head of research Tim Lawless said dwelling values had been trending lower since mid-2014, down a cumulative 21.3 per cent through to the end of November.
“Over the past thirteen years, Perth has seen house values move from being the most expensive across the capital cities to now be the lowest; great news for first home buyers, however Perth home owners have seen a material reduction in their wealth over the past five and a half years,” he said.
Reiwa president Damian Collins said the improvements in the rental market through 2019 were starting to flow on to the sales market.
“With the latest figures from CoreLogic showing the first positive signs of improvements, reiwa.com data is also showing that Perth’s median price has stabilised, holding at $479,000,” he said.
“Stock for sale has dropped significantly over this time last year and we are starting to see demand exceeding supply in some locations.
“Overall, the median sale prices are holding up well in Greater Perth with one in four suburbs seeing an increase in median price in November.”
The suburb to see the biggest spike in median was Floreat with a 3.1 per cent increase to $1.34 million.
This was closely followed by Wembley, Willetton, Clarkson and Spearwood.
Properties also sold in a shorter time frame in November, an average of 70 days on the market compared to 79 in October.
While the news is positive, it is too soon to crack open the champagne to celebrate the end of the downturn.
“We are optimistic that we have reached the bottom of the market overall, however to be certain we would want to see a return to consistent growth,” Mr Collins said.
The rental market had been the highlight of 2019 due to steady leasing activity levels and a plummeting vacancy rate, and more improvements were recorded in November.
The median weekly house rent price rose $5 to $370, while the overall median rent remained stable at $350 per week.
“Reiwa.com data also found that one in four suburbs had an increase in median weekly rent, with Cottesloe increasing significantly by $13 to $863 per week,” Mr Collins said.
The top performing suburbs by median weekly rent price were Eglinton, Clarkson, Wannanup and Willetton, which all saw increases by $10 per week.
“With the vacancy rate currently sitting at a low 2.4 per cent and listings for rent 16 per cent lower than a year ago, we can hopefully expect see rent prices continue to increase,” Mr Collins said.
“Leasing activity has declined in November, however this is a trend we usually see as we near the end of the year and as sale activity traditionally picks back up in the first few months of the year, we should continue to see the rental market remain on an upward trend.”