INDUSTRY NEWSReal Estate NewsWA Real Estate News

The worst is over for Perth property market: REIWA

The Perth property market continues to stabilise, with preliminary September quarter data revealing steady or improved levels across most key market indicators.

REIWA President Hayden Groves says conditions in the September quarter had mirrored those experienced in the June quarter, which indicated the Perth property market may have finally found its floor.

โ€œWeโ€™ve observed six months of stable conditions, with both the June and September quarters posting consistent results. Historically, before a market improves there is a sustained period of level stock, sales activity and house prices, which is what we appear to be witnessing at the moment,โ€ Mr Groves said.

Median house and unit price Perthโ€™s preliminary median house price for the September quarter came in at $499,000.

โ€œOnce all sales have settled, we expect the revised September quarter median to lift to around $515,000, an increase on the June quarterโ€™s $510,000 median,โ€ Mr Groves said. REIWA analysis shows Perthโ€™s median house price only experienced a marginal one per cent decline when compared to the same time last year.

โ€œComparatively, between the September quarters in 2015 and 2016, Perthโ€™s quarterly median house price declined by 2.3 per cent. These longer term trends are a good indicator as to the positive direction the market is headed, as the rate of decline is slower than it was two years ago,โ€ Mr Groves said.

Perthโ€™s preliminary median unit price is $395,000 for the three months to September. reiwa.com data projects this figure will lift to $407,000 once all sales have settled, putting it on par with the June quarter median

โ€œIt bodes well for the market that Perthโ€™s house and unit prices are exhibiting signs of recovery simultaneously,โ€ Mr Groves said. Sales activity There were 6,960 property sales in Western Australia in the September quarter. Mr Groves said this preliminary figure was expected to lift to around 8,000 once all sales had settled.

โ€œIn the Perth metro region, property sales increased in the September quarter. Once all transactions have settled, we expect sales to exceed 6000, up from 5,730 in June quarter.

Hayden Groves, REIWA president

โ€œREIWA analysis shows despite softer market conditions, this quarterโ€™s projected sales figure is not far off the 10 year quarterly average of 6,780. Given the challenging economic factors facing the state, itโ€™s a testament to the strength of our local market that it has held up relatively well through the downturn,โ€ Mr Groves said.

Listings for sale Stock levels in Perth continue to decline, falling from 14,071 at the end of June 2017 to 13,043 at the end of September. Mr Groves said after a prolonged period of rising listings across the metro area, it was pleasing to see substantial declines occurring.

โ€œThe September quarter listing figure is 7.3 per cent lower than the figure recorded at the end of June and 7.9 per cent lower than the figure recorded at the end of September 2016.

โ€œWith sales activity trending up and listing levels declining, this has improved net demand across the metro area and contributed to the healthy sales figures weโ€™ve seen this quarter,โ€ Mr Groves said.

Average selling days and discounting It took on average 70 days to sell a house in Perth in the September quarter.

โ€œThis quarterโ€™s average selling day figure is two days slower than it was in the June quarter, but two days faster than it was in the September quarter 2016,โ€ Mr Groves said.

Source
REIWA Press Release
Show More

News Room

If you have any news for the Real Estate industry - whether you are a professional or a supplier to the industry, please email us: newsroom@eliteagent.com