Perth leads modest house value gains in February: Residex

Median house values lifted almost 1% over February with Perth and its accompanying WA country market the strongest performers, according to the latest housing data from Residex.

The February figures suggest the housing market is gathering steady momentum with Residex recording a 0.96% gain in February following a 0.61% quarterly gain.

“Things in the financial world and the Australian housing market are looking fine and I am pleased to be delivering a positive newsletter,” writes Residex chief executive John Edwards.

Edwards pointed to the recent gains in the Westpac Melbourne Institute Index in the March reading, following a 7.7% jump in February, the fifth consecutive month that it has registered above 100.

“Much of the population is feeling positive about the current situation.

“The housing market is presenting growth on an Australia-wide basis and the trend is moving in an upward direction,” he says.

Over the past 12 months Perth house values are up 3% to a median of $493,000.

The Perth unit market has been particularly strong, up by 11.3% over the past 12 months to a median value of $425,500.

WA country house values also lifted, up 2.24% over February and 3% over the past year to a median of $344,500.

The Perth housing market also delivered a boost to property investors with an 8% rise in weekly house rents to $470 per week and a 11.4% gain in unit rents to $440 per week.

Rents are rising on the back of declining listings and a very tight vacancy rate.

The Real Estate Institute of Western Australia (REIWA) recorded a Perth metropolitan vacancy rate of 1.9% for the January 2013 quarter with an even tighter 1.3% vacancy rate for the unit market.

The REIWA noted the diminishing level of listings in metropolitan Perth in the wake of strong population growth and improving consumer confidence, which is putting “upward price pressure and increased demand for homes”.

REIWA president David Airey noted that properties listed for sale slipped to just 8,429 in March, down from 14,092 at the same time last year.

“Agents are reporting an increasing shortage of properties in popular price ranges especially around the median of $500,000," said Airey.

“REIWA data suggests that listing stock is trending downwards on the back of strong sales turnover and these properties are not being replaced with enough new listings to meet demand.

“Now that the market appears to have turned in favour of sellers, many may be holding back with the expectation of a better price in the months ahead. Until more sellers list their properties and until we get more new homes onto the market from builders, then competition from buyers will put pressure on prices,” Airey said.

The Residex figures show that Adelaide was the next strongest capital city performer after Perth in February with a 0.98% gain in its median value of its houses to $392.000.

Sydney recorded a modest 0.66% rise in its median house value to $682,500 with values up 3.88% over the past month

Melbourne recorded a modest 0.28% gain with a median house value of $556,500 with house values almost unchanged on a year ago.

Brisbane house values retreated 1.42% over February to a median of $433,000 but are up 1.41% for the quarter and 2.57% over the past 12 months.

Year-on-year Darwin stands head and shoulders as the top performing market with a 9.43% rise in its median house values to $525,000 – though there was a small 0.84% correction in February.

Darwin house rents are up 11.5% to a median of $580 per week and offers capital city investors the highest rental yield of 5.78%.

Darwin units offer a yield of 6.09% also the highest across capital cities.

Spurred on by the wealth of mining and LNG projects, the wider Northern Territory housing market continues to rise with house values up 7.9% over the past 12 months and a median value of $489,000.

Overall, the unit market tread water over February as it has over the past quarter with unit values up just 1.1% over the past 12 months with a national median unit value of $398,000.

Brisbane, Melbourne and Sydney all recorded small gains in unit prices in February with Perth the standout market over the past 12 months.

Hobart unit price are down nearly 10% over the past 12 months.

Click here for the full Residex breakdown for capital city and country markets over February.

Photo courtesy of Flickr.