Conflicting views on Perth house prices

Two separate property research organisations have released data on the value of houses in Perth, with one stating house prices dipped in the past few months while the other is forecasting the median price to pass the $500,000 mark in the March quarter.

The latest RP Data Rismark February Hedonic Home Value Index found that the median price of a house in Perth fell 0.8 per cent in February to $495,000, or dipped 0.2 per cent in the three months to the end of Feburary.

The index found that the median value of a unit gained 0.4 per cent in February to $410,000, or dropped 0.5 per cent in the three months to February.

Nationally, dwelling values in capital cities rose by 1.4 per cent in February following 2 per cent growth in January.

Meantime, the Real Estate Institute of WA today said that Perth's median house price is likely to pass the $500,000 mark in the March quarter as sellers and buyers gain confidence in the market.

REIWA president Alan Bourke said the Institute is showing 12,700 properties for sale in Perth at the end of March, representing a 22 per cent increase on the December figure.

"This includes around 2,060 blocks of land, which is significantly more than some other recent reports on lot supply have suggested," Mr Bourke said.

Mr Bourke said the increase in listings reflected a growing confidence in the WA property market, with buyers and sellers feeling that the worst of the global financial crisis is now behind them.

"The Perth median house price is very likely to top $500,000 for the first time when official figures are released in early May. REIWA's internal data from sales by its members is already showing that we have reached this level," Mr Bourke said.

Mr Bourke said the rise in the median price continues to be fuelled by a shift in the market to higher priced property, as the sales of homes under $400,000 subside.

"There has been a dramatic fall in First Home Owner Grant applications lodged with the Office of State Revenue in the first two months of 2010. This is largely because the Commonwealth has ended its temporary cash boost for first time buyers," Mr Bourke said.

REIWA data show increased sales activity in the March Quarter in the $500,000 -$600,000 range, which is currently the strongest segment of the market.

"Here, the proportion of sales jumped 2.5 percentage points to represent about 18 per cent of the market, while the other price range to show increased activity for the quarter was in the $750,000 to $1m range," Mr Bourke said.

REIWA data on rental properties show a seasonal increase in new tenancies during the March quarter with the vacancy rate tightening a little from 4.8 to 4.5 per cent for the three months to February. Mr Bourke said this data will be updated for the March quarter in coming weeks.

"We are not seeing any movement at this stage in the overall median rent of $370 per week recorded in December last year, however it seems that the median rent specifically for houses has risen by $5 to $380 per week.

"The median rent for units, apartments and villas has remained steady at $350 per week," Mr Bourke said.