The Perth property market is displaying signs it is starting to stabilise with the latest preliminary reiwa.com data showing that the median house price increased to $540,000 for the three months to 31 December, up nearly one per cent on the month prior.
REIWA President Hayden Groves said an increase in the median house price along with a fall in the number of properties for sale are indicators characteristic of a market that is beginning to steady.
“The total number of listings as at 31 December 2015 was 14,539, an adjustment from the November figure of 16,475, which is mostly attributable to the effect the holiday season has on seller behaviour,” Mr Groves said.
“Our latest preliminary data for the three months to December 2015 showed sales volumes sitting at 1,318, down from 1,700 in November. Whilst it’s not uncommon for sellers to withdraw their properties from sale during the festive season, we’re also seeing the impact that the removal of the First Home Owner Grant is having on sales volumes. The test will be to see how many properties come to market by the end of January.
“Further analysis showed that, as we predicted, there is higher demand in the trade-up sector of the market with properties priced between $500,000 and $600,000 and with four bedrooms taking 47 days to sell, significantly less than the market average of 60 days.
“Fewer than 50 per cent of sellers are discounting in this price range, further demonstrating the demand in the trade up market.
“In contrast, between 50 to 70 per cent of sellers are discounting their properties in the first home buyer’s price bracket which again highlights the softening in demand since the removal of the First Home Owner Grant for established homes,” Mr Groves said.
The Perth rental market has stabilised with the overall median rent increasing by $5 to $400 in December according to the latest preliminary reiwa.com data.
“The rental market has also showed signs it is stabilising with weekly rents increasing across the board and listings at levels consistent with the month prior,” Mr Groves said.
The median house rent is now $410, an increase of 2.5 per cent, or $10, while the weekly median unit rent has increased 1.3 per cent, or $5, to $380.
Rental listings in the Perth metro area have increased 15 per cent over the last three months to 9,533 as at 31 December 2015.
For more information about the Perth property market, visit the Perth metro page.
*These figures will be revised over the next few months with official Landgate quarterly data to be released in February for the December 2015 quarter.