Perth median home prices have risen to record levels, a trend confirmed by two sets of data released today.
The Real Estate Institute of Western Australia’s quarterly look at house prices put the median value in Perth at somewhere between $530,000 and $535,000 in November, up from its previous peak of $525,000 in the June quarter.
Property market analysts RP Data said the Perth median home value was $500,000 during the same time period, but was 2.3 per cent higher than its previous peak.
RP Data said Perth home values were up 2.9 per cent in November for a 2.5 per cent growth rate over the quarter, taking the yearly gain to 8.9 per cent.
Sydney and Perth were the only capital cities in Australia where median home values are now higher than their respective previous peaks.
REIWA president David Airey said the Perth market had gained through a combination of strong first homebuyer activity and a lift in activity within a 10-kilometre radius of the CBD.
“This shift in sales composition towards more expensive properties selling pulled the median upwards,” he said.
Mr Airey said the data showed a fall in selling activity in some of Perth’s coastal sub regions, including parts of Wanneroo, Joondalup and Rockingham.
“While this retraction in sales in only modest at around 2 to 3 per cent on the previous month, it is accompanied by a drop in listings also in these areas which suggests that the fall in sales activity has nothing to do with oversupply,” he said.
“It is more likely that first home activity in areas away from the coastal strip has been the focus of buyers in more recent times.”
REIWA’s statistics showed there were currently 8,656 dwellings and 1,199 lots on the market, while RP Data's research indicated 4,431 dwellings hit the market over the past month, taking the number of available properties for sale to 17,366, 13.8 per cent lower than 12 months ago.
RP Data said the average time on market for Perth homes was 57 days, with vendors providing discounts of up to 4.7 per cent on initial asking prices.
In the rental market, Perth median rents fell by 2 per cent over the last three months, to $460 per week.
There are currently 4,419 properties available to rent in the metropolitan area, with vacancies sitting around 3.2 per cent.