Perth property market falls behind nation

OVERSUPPLY in Perth’s residential property market has seen it emerge as the weakest performing in the nation, according to median price analysis.

September quarter analysis by RP Data and the Real Estate Institute of Western Australia measured the median price for detached homes in Perth, not including units, at $480,000.

REIWA recorded a 4 per cent drop from the June median price of $500,000, while RP Data’s statistics showed a 5 per cent drop for the quarter taking the Perth market’s year-to-date price drop to 4per cent.

According to RP Data, the 5 per cent drop in value for the September quarter was due to an increase of supply in properties available for sale in Perth.

“Perth has an effective housing supply of nine months and has recorded a decline in value of 0.3 per cent over the year,” RP Data senior research analyst Cameron Kusher said.

The REIWA statistics also showed an increase of supply dragging down the median price.

“The number of properties on the market was up by seven per cent on June to 15,500 listings, but this is a significant jump of 38 per cent on the same time last year,” REIWA president Alan Bourke said.

“The number of selling days is largely unchanged, with most sellers experiencing 63 days on the market.”

Mr Bourke said a buyers’ market had emerged, with 70 per cent of sellers prepared to drop asking prices up to six per cent to find a buyer.

Meanwhile, the price of vacant land in Perth has remained stable, according to the latest numbers from the Urban Development Institute of Australia.

The average price of land in Perth was $248,211 for the September quarter.

UDIA chief executive Debra Goostrey said the figures showed land prices were up one per cent for the quarter and 3.2 per cent for the year.

“This strength in land prices represents a good level of stability in the market which is a positive sign for the property market moving forward and most importantly for people looking to buy,” Ms Goostrey said.

“While the established housing market has suffered this year with a glut of homes on the market, this is certainly not the case for new land.”

REIWA figures showed a bigger spike in the price of vacant land, with a 12.5 per cent increase lifting the median block price to $270,000.

Mr Bourke said the jump was due to an increase in sales of more expensive lots closer to the city and fewer sales at the more affordable urban fringe.