Perth price uptick a “compositional shift” due to lack of FHBs: REIWA

The Real Estate Institute of Western Australia (REIWA) have recorded a small uptick over September in the median house price, despite a softening sales volumes.

The new $544,000 median, up 1% in the three months to September, is largely due to first home buyers holding out of market, according to REIWA’s president David Airey.

He noted that a compositional shift in sales had occurred, with an increase in turnover closer to the CBD and weakness in the outer suburbs.

“This may be a result of the numbers of first home buyers slipping away,” he said.

Notably, September is usually a seasonally slow sales month.

“Although there was a pick-up in sales at the end of September, numbers overall for the September quarter were down by 7% on the June quarter and down 15% on the same time last year,” he said.

“Despite some modest monthly variations, there has been very little movement in the Perth median house price between recent quarters, with Landgate data, for example, indicating a revised median for the June quarter of around $541,000.”

Western and eastern parts of the City of Stirling, as well as Fremantle, Vincent and Melville all saw sales pick ups.

Weaker sales were recorded in Joondalup and Belmont.

Rents were recorded as dropping since June, despite the overall metropolitan rent remaining at $450 per week at present. This is $10 down on houses from three months ago, with units and villas $15 down to $430.

There were 150 fewer rentals recorded over September than the month prior for Perth, but it maintains a 4% vacancy rate.

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