REIWA advised trend for the week ending 2nd February 2016, reported sales increased 36% to 723 sales this week, as sales continue to trend up following the Christmas and New Year dip.
This week’s increase can be attributed to a 34% increase in house sales, as 35% increase in unit sales and a 49% lift in land sales.
In line with the increase in sales, the total number of properties listed for sale this week declined 1% to 14,782, from 14,997 last week
Listings for houses and units have both seen a 1% decrease, while land listings dropped off 3%. Despite this, listings remain 3% higher than four weeks ago and 15% higher than the same time last year.
Turning to the rental market, and REIWA members reported a 1% decline in the total number of properties available for rent over the week, with the figure dropping from 10, 104 last week to 10,042 this week.
This figure is 2% higher than four weeks ago and 58% higher than the same time last year.
Overall the Perth Property market is showing signs of stabilising with the latest REIWA research showing that the median house price increased to $540,000 for the quarter ending 31st December 2015.
Suburb Snapshot – Highgate
Highgate is an inner city suburb 2km north of the Perth CBD with a population of just under 2000 people. Highgate boasts a charming mix of heritage/art deco influenced real estate set within a vibrant entertaining percent with a wide range of restaurants and coffee/gift Shops.
Beaufort Street is the hub of Highgate, with pubs, wine bars, shops, restaurants and cafes. In 2015 median house price was $985,000 and was a top performing suburb with a 2015 growth in price 11.6% and opposed to the overall Perth metro region which showed -1.8%.
The Perth metropolitan residential housing market has according to REIWA research seen a slump in sales activity with an over supply of listings. As of the week ending 17th June, 2015, there was 14,369 residential property listings compared to the same period last year of 10,714. An increase of 200 listings occurred in the month leading up to the 17th of July.
The metropolitan region median house price is holding at $550,000 with an average selling period of 70 days.
The fastest growth suburbs within the Perth metropolitan area was North Fremantle with an annual growth rate to 31/03/2015 according to REIWA of 24.8% with a median price of $1,310,000 with a total sales volume of some 65 properties in the 12 months to 31st march 2015.
The next best performing suburb was Coolbellup with an annual growth rate of 20.7% for the year ending 31st March 2015. These two suburbs show a sharp contrast in purchaser profile. North Fremantle is a small riverside suburb with a population of some 2,700 while Coolbellup is a modest location with a population of some 4,900 with a sales volume of approx 175 for the 12 month period to 31st March 2015. Owner/occupiers were the dominant purchaser cohort in North Fremantle while first home buyers and investors were the significant buyers in Coolbellup where the median house price is currently at $545,000.
Sales activity has been more subdued lately with listing growth also slowing.
Overall sales fell 8% this week to 797 the lowest in four weeks.
Top selling suburbs to week ending 26th November for north of river were East Perth and Dianella. While south of river Baldivis took top spot.
Growth in listings has slowed over the last two weeks.
Current data from the Real Estate Institute of Western Australia released on 29th August, 2014, show no movement in Perth’s median house price for August.
REIWA president David Airey said the metropolitan median price was steady at $540,000 but that sales turnover had slumped. ‘Turnover for houses is down by almost 25% for the three months to August, however there is always a seasonal dip in sales during the winter months and this tends to pick up as we head into Spring weather,’ Mr Airey said.
There were 1,734 reported sales in the month of August, down by 6 per cent on July. Sales were weakest through cities of Stirling, Fremantle, Vincent and Kwinana along with the western suburbs. Mr Airey said low consumer confidence was impacting on the market. “The number of properties on the market is up by 1 per cent for the month of August, now sitting at 10,049 listings,” Mr Airey said.
Increased listings were strongest through the cities of Bayswater and Bassendean, up by 54 properties to 406, and also through City of Vincent, up by 30 properties to 215. Listings fell most strongly through the northern end of Joondalup, dropping 43 properties to 231.
Mr Airey said the rental market was also showing signs of stabilisation, with no change in the median rent.
A number of prestige suburbs have lost value while a mix of suburbs have shown strong growth.
Residential Suburban Winners
The following suburbs recorded the largest growth in Median House Prices in the last 12 months end 30th June 2014, according to REIWA data.
Alfred Cove 24.9% growth
Coolbinia 20.4% growth
East Cannington 20.0% growth
Wembley 19.6% growth
Golden Bay 19.3% growth
Swanbourne 18.8% growth
Rossmoyne 18.1% growth
Kenwick 18.0% growth
North Fremantle 17.9% growth
Helena Valley 17.7% growth
Residential Suburban Losers
The following suburbs recorded a decline in Median House Prices in the last 12 months ending 30th June 2014, according to REIWA data.
Mt Lawley – 5%
Menora – 4.7%
City Beach -1%
Dalkeith – 1.1%
Cottesloe – 4.2%
According to REIWA preliminary data out today, Perth’s median house price is $549,000, based on these early figures Perth had enjoyed growth over the last financial year of up to 6%.
Sales for the month were down by around 400 properties to 1,892 but this was not unexpected. While turnover is down on reported contracts, this seasonal dip in sales activity is always experienced in the winter months.
A slowing of first home buyer activity and weaker top end sales saw market activity compress with increased house sales in the $400-$800 range. Listings across the Perth market are now starting to recover as first home buyer activity slows.
At the same time, rental listings were stable across the quarter rather than falling which is the norm for the March quarter, indicating that stock flowing into the rental market is likely to grow significantly across 2014 as new housing is complected. This is likely to be exacerbated into 2015 by a steady stream of new high density stock flowing into the market looking for tenants.
The recent tough State and Federal budgets has knocked consumer confidence as increases in government charges and changes to benefits come into play.
With the softening of first home buyer activity and weak investor activity, listing numbers have started to recover, increasing 16% across the quarter to 10,068, the highest level since mid-December 2012.
Increased stock and less first home buyer demand has seen the average selling days increase by 6 to 56 which is 1 below the March quarter 2013 figure.
Extract from REIWA market update March Quarter 2014
We note that the sale of Jacaranda Gardens retirement village time for expressions of interest have been extended to the 5pm Friday 20th June, 2014.
Did you know…. Residential sales are down by approx 50 transactions per month across the Perth metropolitan area however on a positive note the suburb of Girrawheen has showed a value increase of 16.8% (March 31st 2014) with a median house price of $388,000. Source REIWA research.
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