10/07/2009 - 12:02

Perth house prices rise $15,000

10/07/2009 - 12:02

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The median house price in Perth has risen by 3.5 per cent, or $15,000, in the June quarter as more owners traded up to more expensive homes while the rental market's vacancy rate is now higher than normal, new data shows.

Perth house prices rise $15,000

The median house price in Perth has risen by 3.5 per cent, or $15,000, in the June quarter as more owners traded up to more expensive homes while the rental market's vacancy rate is now higher than normal, new data shows.

Preliminary figures from the Real Estate Institute of WA (REIWA) shows the city's median house price has risen from $430,000 recorded in the March quarter to $445,000.

REIWA president Rob Druitt said the median price had recovered nearly all of its fall in the second half of calendar 2008, with the current price just under the $448,000 figure recorded in the last year's June quarter.

"It may well be the case that the preliminary median of $445,000 is exceeded once all settled sales data is received over the next few months," Mr Druitt said.

He added that the growth trend in the residential market was being aided by a return of the trade-up buyers.

"Much of the recovery in the median house price over the last six months can be attributed to increasing trade-up activity, and this is reflected in the distribution of sales tending towards more expensive properties," Mr Druitt said.

During the quarter, there were several stronger performing and more expensive areas that contributed to the overall median price increase, specifically the western suburbs which were up by 12 per cent while Melville and Joondalup North increased by around 5 per cent

The mid-range price areas such as Bayswater, Bassendean, Belmont and Stirling East were up around 3 to 4 per cent.

The active, more affordable end of the market was mixed with Armadale/Serpentine up around 4 per cent, Gosnells down 4 per cent, Swan dipped 1 per cent while Wanneroo South rose 2 per cent.

The median prices in the Rockingham/Kwinana area and the remainder of Wanneroo were flat.

During the June quarter, the total number of properties on the market dropped to 12,800, including 2,100 blocks of land.

The figure is a 15 per cent drop compared to the March quarter and a 26 per cent fall compared to the previous corresponding period.

Mr Druitt said the market should move back into a "state of equilibrium" between supply and demand during the September quarter.

The average number of days properties spent on the market fell by 7 to 70 days in the June quarter, with notable declines including Belmont, Stirling East and Wanneroo.

The latest REIWA figures cap off a week of housing data with real estate group Ray White announcing property sales in WA had increased by 23 per cent in June.

Figures from the Australian Bureau of Statistics showed that total number of owner-occupier finance commitments in WA increased slightly in May to 7,310, slightly up from the previous month's 7,237.

Meantime, the availability of rental properties has increased, with the vacancy rate growing to 3.6 per cent in the quarter.

This has had the effect of lowering the median rental payments for houses by around $10, to a median of $360 per week. However, rents for units and apartments remained unchanged at a median of $350 per week

"The increase in the vacancy rate is significant, having grown 0.7 per cent on March to a level that is now higher than usual for Perth, and it's possible this vacancy rate will increase further during the September quarter as more renters become first home buyers and as some of the retrenched mine workers move back east," Mr Druitt said.

The Mandurah area has recorded the highest vacancy rate so far with 4.8 per cent which has softened the rweekly rental price to $280 per week.

 

 

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Preliminary data released today by the Real Estate Institute of Western Australia show that Perth's median sale price for homes grew by $15,000, or around 3.5 per cent, in the June quarter.

This growth rate brings Perth's median house price to around $445,000, on the revised median of $430,000 for March.

REIWA President Rob Druitt said the growth trend was being helped by a return to the market of the trade-up buyers.

"Much of the recovery in the median house price over the last six months can be attributed to increasing trade-up activity, and this is reflected in the distribution of sales tending towards more expensive properties," Mr Druitt said.

Mr Druitt said it was worth noting that Perth's median house price had recovered virtually all of its fall from the second half of 2008, with the current median price being just under the figure of $448,000 from June last year.

"It may well be the case that the preliminary median of $445,000 is exceeded once all settled sales data is received over the next few months," Mr Druitt said.

The overall number of properties on the market dropped to 12,800 at the end of June, including 2,100 blocks of land.

This figure is down 15 per cent on the end of March and 26 per cent below the end of June last year.

"At the current rate of depletion, properties for sale, coupled with the expected surge of first home buyers before the Commonwealth boost ends on 30 September, should see the market move back into a state of equilibrium between
supply and demand during the September quarter," Mr Druitt said.

The average number of selling days for the metropolitan area fell by 7 days in the June quarter, down to 70. There were notable declines in selling days in a number of areas, including Belmont (down 20 to 57 days), Stirling East (down 18 to 58 days), and the north-east area of Wanneroo (down 16 days to 54 days).

RENTS

The availability of rental properties has increased, with the vacancy rate growing to 3.6 per cent in the quarter.

This has had the effect of lowering the median rental payments for houses by around $10, to a median of $360 per week. However, rents for units and apartments remained unchanged at a median of $350 per week

"The increase in the vacancy rate is significant, having grown 0.7 per cent on March to a level that is now higher than
usual for Perth, and it's possible this vacancy rate will increase further during the September quarter as more renters
become first home buyers and as some of the retrenched mine workers move back east," Mr Druitt said.

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