Perth house prices unchanged in September quarter with first-home buyer numbers rising: REIWA

The Perth median house price was unchanged over the September quarter at $482,000, following revisions to the June median house price, with sales volumes falling marginally, according to the Real Estate Institute of Western Australia (REIWA).

The institute had previously reported an unrevised June quarter median of $475,000.

The number of properties listed for sale fell 14% during the quarter to just 10,400 listings, well below normal levels of around 12,000 properties and down by 30% over the last year.

Rents remained unchanged at a median of $450 per week, but are up more than 10% over the past 12 months.

The combination of higher rents, a low rental vacancy rate of 1.8% (and unlikely to return to a balanced market level of 3%) as well as a “surging” population continues to build pressure on prices, according to REIWA president David Airey.

Airey said that while house prices were stable, turnover had been declining with the sales volume dipping by around 4% in the September quarter.

“Turnover is still around 25% higher than the same time last year, but the trend over the last few months shows this to be slowing. It might be a seasonal dip given that the winter months are sluggish, or it might be part a longer pattern we need to monitor.

“Interestingly, sales turnover for units, apartments and villas grew by around 3% in the September quarter, but with no movement in the median price in the multi-residential segment of the market.”

According to Airey, growth in the market for units valued under $350,000 is probably a reflection of the very strong first-home buyer activity.

“First-home buyer grants for the September quarter were at their highest level since 2009, before the first-home owner grant boost ended, and now account for around 30% sales,” he says.

“These listings include some 2,100 blocks of land, many of which are in the regions of Rockingham-Kwinana, Armadale-Serpentine, Gosnells, Swan and Cockburn,” says Airey.

Land in Rockingham starts from around $180,000 for a 442-square-metre block, while a 420-square-metre block in Armadale can be picked up under $100,000.