Perth's property median hits $540,000

The local property market is beginning to show signs of stability as the rental market gains strength, according to the latest Real Estate Institute of Western Australia figures.

Reiwa data showed the median house price in Perth increased to $540,000 for the three months to December, up 0.9 per cent from November's median of $535,000 and is about $30,000 higher than what CoreLogic RP Data valued yesterday.

Reiwa president Hayden Groves said the increase in the median house price, along with a fall in the number of properties for sale, was indication of a market that was beginning to steady.

“The total number of listings as at December 31 was 14,539, an adjustment from the November figure of 16,475, which is mostly attributable to the effect the holiday season has on seller behaviour,” Mr Groves said.

“Whilst it’s not uncommon for sellers to withdraw their properties from sale during the festive season, we’re also seeing the impact that the removal of the first home owner grant is having on sales volumes.

“The test will be to see how many properties come to market by the end of January.”

Mr Groves also said the latest data showed there was higher demand in the trade-up sector of the market with properties priced between $500,000 and $600,000 and with four bedrooms taking 47 days to sell; significantly less than the market average of 60 days.

“Fewer than 50 per cent of sellers are discounting in this price range, further demonstrating the demand in the trade up market,” he said.

“In contrast, between 50 to 70 per cent of sellers are discounting their properties in the first home buyer’s price bracket which again highlights the softening in demand since the removal of the first home owner grant for established homes.”

Meanwhile, the local rental market has stabilised according to the Reiwa data, with the overall median rent increasing by $5 to $400 in December.

“The rental market has also showed signs it is stabilising with weekly rents increasing across the board and listings at levels consistent with the month prior,” Mr Groves said.

The median house rent is now $410, an increase of 2.5 per cent, or $10, while the weekly median unit rent has increased 1.3 per cent, or $5, to $380.

Rental listings in the Perth metro area have increased 15 per cent over the last three months to 9,533 as at the end of December.