02/04/2013 - 07:01

Perth property more expensive than ever

02/04/2013 - 07:01

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Perth property more expensive than ever

Perth’s residential property sector has recorded the highest growth of all capital cities over March, while the Real Estate Institute of Western Australia says median home values are at an all-time high.

Figures released this morning by sector analysts RP Data-Rismark showed median values were up 3.4 per cent over the month of March, with Hobart the next best performer with a 2.5 per cent rise.

Dwelling values were up 5.8 per cent over the quarter, RP Data said, putting Perth’s median price at $479,000.

The Real Estate Institute of Western Australia, however, released analysis saying Perth’s median house price had hit a record high of $510,000.

REIWA's quarterly look at house prices showed the median had surpassed the previous peak of $505,000, set in the March quarter of 2010.

REIWA president David Airey said the 2 per cent lift since the December quarter was driven by a lift in turnover and rising activity above the median price.

“Our preliminary data for the March quarter show that while the proportion of sales under $500,000 has fallen, there was a marked increase in sales between $500,000 and $1 million,” Mr Airey said.

“The $600,000 to $700,000 range was the most dominant price point above the median during this period and is a healthy illustration of consumer confidence through trade-up activity.”

Homes selling between $600,000 and $700,000 and also between $800,000 and $1 million made up 20 per cent of sales during the quarter.

Mr Airey said 12 per cent of all sales for the March quarter came between $400,00 and $450,00.

“Sales in this price range are turning over very quickly and the Office of State Revenue reports that in February the median purchase price for first home buyers was $425,000,” he said.

REIWA's preliminary data showed more expensive homes were impacting price movements, with most local government areas' median values either rising or falling 3 per cent.

In the cities of Bayswater, Bassendean, Belmont and Canning, where supply has tightened, median prices rose by 4 to 5 per cent.

Land sales also increased over the quarter, with the data showing a 10 per cent rise across the metropolitan area,

“The volume of land for sale remained relatively stable across the quarter at around 1,500 lots, while the total number of listings including houses, units and land have remained reasonably steady in recent weeks,” Mr Airey said

REIWA said there are around 8,500 properties currently listed, down from 9,300 at the start of 2013.

“The March quarter results show a buoyant market returning to more normal conditions on the back of solid population growth and a strong state economy,” Mr Airey said.

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