RESIDENTIAL PROPERTY

Perth residential sales skyrocket

Photo Wavebreak Media Ltd
Print Friendly, PDF & Email

SALES activity in Perth was up by 42.5% in December, with 3,067 transactions recorded by REIWA.

This increase compared to the same time in 2019, highlights the typical quiet on the market over the month of December. However, 2020 saw purchasers unable to travel and keen to take advantage of unique market conditions such as low interest rates.

Median house prices sat stable across the month at $480,000, with 45% of Perth suburbs reporting an increase, according to reiwa.com. While at the same time CoreLogic revealed house values increased by 1.1% in December.

“Agents on the ground have reported that good, quality stock is being snapped up fairly quickly and with listings for sale decreasing 16.5% in December, it is only a matter of time before median prices start to increase,” said Damian Collins, president of REIWA.

The south-eastern suburb of Kelmscott recorded the largest increase in median sale price, at 6.2% to $375,00. Following behind was Yokine with 4.8% to $650,000, Wellard with 4% to $399,500 and Girrawheen with 4% to $310,000.

Lastly was the riverside suburb of Applecross which recorded an increase of 3.4% to a median sale price of $1.5 million.

“Perth remains very favourable for buyers and investors, however with REIWA expecting Perth’s median price to grow between six and 10% in the 2021 calendar year, I would advise those who are thinking about purchasing their first home, trading up or investing, to act soon before prices inevitably rise,” continued Collins.

In the Rental market, there was a 9% increase in leased properties for a total of 3,655 recorded rentals throughout Perth in December, up from the previous month.

“While leasing activity increased in December, we saw listings continue to decline with a 14.5% decrease when compared to November and 56.6% decrease when compared to December 2019,” said Collins.

Of the 100 suburbs that recorded an increase in leasing activity over December, East Victoria Park, Harrisdale, Cloverdale, Averly and Port Kennedy led the pack.

With reiwa.com also naming Willetton, Maylands, Clarkson and Applecross among the strongest performers.

Median rent rose by $5 to $395 per week, following the trend of the last four months, and reportedly reaching its highest rate since February of 2016.

According to Collins, it is the suburbs on the higher end of the market which saw the most significant increases in median rent prices. Both Mount Pleasant and Duncraig saw a 4% increase to $550 and $520 respectively per week. With Applecross increasing by 3% to $650. Alkimos by 2.9% to $340 and Wanneroo again by 2.9% to $350 a week.

“As we see rental stock levels continue to remain low, we can expect rents to continue increasing, however we need to remember that rents are still a lot cheaper than they were in 2014,” concluded Collins.

Related posts
CORONAVIRUS COVID-19 PANDEMICRESIDENTIAL PROPERTY

HomeBuilder extension critical to Vic housing market

RPM has call for an extension to the HomeBuilder grant as it continues to push the Victorian housing…
Read more
CORONAVIRUS COVID-19 PANDEMICRESIDENTIAL PROPERTY

Low rates and FOMO push listings lower

PROPERTY listings fell by 2.7% over February, as demand swallows up supply, despite new listings…
Read more
CORONAVIRUS COVID-19 PANDEMICGENERAL PROPERTYRESIDENTIAL PROPERTY

RBA under pressure to raise rates

RISING house prices could put pressure on the Reserve Bank to lift interest rates sooner than…
Read more