Perth has become Australia’s fastest-growing major property market after the city’s home value index rose 1.6 per cent last month and 3.8 per cent compared to three months, according to CoreLogic data released yesterday.
REIWA President Damian Collins said with reiwa.com’s data was in line with CoreLogic’s findings, which showed Perth’s median house price had risen to $490,000 in January.
“The improvement experienced in the latter half of 2020 has continued into 2021, which is pleasing to see,” Mr Collins said.
Perth – alongside Darwin – was one of only two major markets not to reach a record high in the December quarter in Domain House Price Report figures released last week but with COVID-19 continuing to impact on travel and the West Australian economy showing signs of recovery, Mr Collins said many locals were opting to invest in property.
CoreLogic data revealed that Perth’s home value index lifted 1.6 per cent in January and 3.8 per cent compared to three months ago, currently making it the fastest growing major market in Australia.
REIWA President Damian Collins said reiwa.com data supported these findings, with Perth’s median house price increasing to $490,000 in January.
“The improvement experienced in the latter half of 2020 has continued into 2021, which is pleasing to see. With the pandemic continuing to impact travel and our local economy bouncing back after a challenging year, more and more West Australians are recognising that now is the time to buy,” Mr Collins said.
There were 8287 Perth properties for sale reiwa.com in January, which was an increase of 1.2 per cent on December but a 33.3 per cent lower volume than the same period in 2019.
“However, we expect more sellers will see the benefits of listing their properties now rather than later,” Mr Collins said.
He said properties were selling at a faster rate than they were a year ago, with median days on the market before sale at 21 days last month, compared to 43 days in January 2020.
“There is little doubt now that the Perth market has swung into the seller’s favour and buyers are needing to act a lot faster to secure a property.”
Despite the uptick in values, house and unit sales were down slightly in January, following the unprecedented sales spike recorded in December, which Mr Collins described as “quite unusual”.
“Typically we see activity drop off in December and January, before lifting again as we get further into the New Year,” Mr Collins said.
Several suburbs still experienced an upswing in sales volumes in January, with Meadow Springs topping the list with a 75 per cent increase, followed by Yangebup (up 67 per cent), Mandurah (up 67 per cent), Alkimos (up 64 per cent) and Heathridge (up 44 per cent).
The Perth metropolitan area and the Peel and South West regions entered a five-day lockdown yesterday after the first case of community transmission of COVID-19 in 10 months but said it would have a negligible effect on the long-term health of the local market.
“There will be a restriction on home opens for five days, but it will have a minimal short-term impact on the market, unless we see a sustained lock down and a significant economic impact, the property market is likely to continue its strong recovery.”