11/01/2008 - 09:40

Perth house prices creep to record high

11/01/2008 - 09:40

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New figures reveal that the median Perth house prices rose 1.1 per cent to a record $466,000 in the December quarter, slightly higher than the previous peak recorded in the March quarter last year.

Perth house prices creep to record high

New figures reveal that the median Perth house prices rose 1.1 per cent to a record $466,000 in the December quarter, slightly higher than the previous peak recorded in the March quarter last year.

The Real Estate Institute of Western Australia has revealed that the median Perth house price continued to rebound following a slump in the June quarter.

The median house price has gained little in a year. It was revealed to be $460,000 at this time last year.

The median Perth house price increased 1.3 per cent in the September quarter to $461,000 and the further 1.1 per cent to $466,000 in December, pushing the median house price above the $465,000 record set in the March quarter last year.

The median house price has gained little in a year. It was revealed to be $460,000 at this time last year.

REIWA President Rob Druitt said that sales volumes remained steady in the December quarter but were down about 10 per cent on the surge experienced in the June quarter.

"However, December's sales volumes are still 25 per cent above the December figure for 2006 when the effects of the market slowdown were really starting to bite," Mr Druitt said.

"We are still seeing price volatility at suburb level between quarters, but there has been no wholesale downturn across the board as some property commentators have been prophesying over the last 12 months.

"Clearly the Perth market is very resilient. And why wouldn't it be with WA continuing to lead the country in terms of business investment, exports, employment and population growth?" Mr Druitt said.

REIWA said the high levels of listings in 2007, which peaked in early December, have now contracted to 13,400 dwellings for sale. The steady flow of sales has also seen the average number of selling days decline marginally from 68 to 65 days during the December quarter.

"The slowdown in new housing activity in 2007 and continuing strong population growth will maintain the demand for housing whether for sale or rent during 2008.

"The only immediate risks to the steadying of the local markets are the spectre of further interest rate rises and ongoing affordability pressures that may be restricting potential first home buyers," Mr Druitt said.

The rental market continued to tighten in the December quarter, with REIWA figures showing the vacany rate falling from 2.5 per cent to 1.9 per cent. The fall was coupled with a 6.7 per cent increase in rent, with the median rent price for new tenancies jumping by $20 to $320 per week.

Mr Druitt expects to tight market to get even tighter.

"The March quarter is traditionally the tightest quarter for rental vacancies with the figure in March last year falling to an historic low of 0.8 per cent," he said.

Despite rising rent prices, research released this week showed Perth's property market had the lowest average yields for both houses and apartments in the nation.

Figures compiled by property market analysts RP Data put the average gross rental yield on a house in Perth at 3.41 per cent and 3.88 per cent for an apartment.

 

 



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