CoreLogic’s November Home Value Index has revealed that Perth’s dwelling value has increased 0.4 per cent in the last month – the first increase in over 18 months.
REIWA President Damian Collins said that while the rental market has been the highlight of 2019 due to steady leasing activity levels and a plummeting vacancy rate, they are now starting to see the flow on effects 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,” Mr Collins 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.
According to reiwa.com the average days on the market improved to 70 days compared to 79 in October.
“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.
Perth rental market
Once again Perth’s rental market has seen signs of improvement with house median weekly rent prices rising $5 to $370 per week during November, 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 to 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.”