Conditions “favourable” in Perth property market: REIWA
The Real Estate Institute of Western Australia (REIWA) results for the September quarter reveal housing affordability is improving in Perth
Housing affordability has improved in Perth during the September 2018 quarter, with REIWA data revealing house and unit prices are softening.
According to the results, Perth’s median house price should settle at $505,000 for the quarter – 1.9 per cent lower than the June 2018 quarter.
It was a similar story for the unit market, with the median expected to settle at $395,000 – 1.3 per cent lower than the June 2018 quarter.
“While quarterly median figures can be more subject to stock composition changes, the fact that the annual change is only one per cent lower suggests that we are at or near the bottom,” new REIWA President, Damian Collins told WILLIAMS MEDIA.
Mr Collins says this is an excellent opportunity for buyers and investors to take advantage of current market conditions to secure their next home or investment property.
“While the worst of the market downturn appears to be behind us, the results of the September 2018 quarter reveal conditions are favourable for buyers and investors,” Mr Collins said.
Despite the overall market experiencing a downturn in median house prices, 57 suburbs bucked the trend.
Swan View, East Cannington, Como, Hillarys and Cottesloe were the top performing suburbs for median house price growth.
Units in Maylands, Midland, Tuart Hill, Fremantle and Claremont had the strongest price growth.
Sales were down slightly, with REIWA data showing a 4.9 per cent decrease since last quarter, but Mr Collins says this is fairly typical for the time of year.
“It’s not uncommon to experience a decline in sales during the September quarter, with West Australians typically less inclined to search for property during winter. We tend to see activity slow during the winter months before increasing again as the weather warms up,” Mr Collins said.
Perth’s top selling suburbs for house sales during the September 2018 quarter were Baldivis, Canning Vale, Morley, Dianella and Gosnells, while the suburbs to record the biggest improvement in house sales activity were Cooloongup, The Vines, Alexander Heights, Mirrabooka and Wattle Grove.
“It’s a good time to buy, which is reflected in the fact a higher proportion of houses are now being sold. This shift in the composition of sales (houses, units and land) indicates buyers are more inclined to purchase a house than they might have otherwise been. This can be attributed to housing affordability improving across the metro area, which has made buying a house a more attainable property purchase,” Mr Collins said.
“We’ve also seen an increase in activity between the $350,000 and $500,000 price range during the September quarter, which is pleasing as it indicates first home buyers remain an active component of the Perth market.”
Mr Collins says that despite lower stock levels recorded for the quarter (a decrease of 3.7 per cent), he’s optimistic about the market’s recovery.
“It’s pleasing that, although there were fewer sales this quarter, listing stock continues to be absorbed.
“This is the third consecutive quarter we’ve seen listings for sale decline, which is a positive step forward in the market’s recovery,” Mr Collins said.
Source : https://therealestateconversation.com.au | 12/10/2018
