Perth property experiences strongest gains in country: Residex

Perth house prices have had the strongest gains over the last year and quarter.

And only Hobart was stronger during September among Australian capital cities.

Perth house prices have grown 6.63% over the year ending September, 6.7% over the last quarter and 2.44% over the last month, according to Residex data.

Hobart had gains of 3.62% over the last month.

The median price in Perth is now $498,000, with an average growth of 9.02% per year over the last 10 years.

Its average price growth is beaten only by Darwin where house prices have grown an average of 10.01% per year over the last 10 years.

There were 24,707 house sales in Perth last year, up 13.41% from the previous year.

House rents in the city are up 21.52% for the year to $480 per week. The increase is double anywhere else in the country.

For units the trend is similar, with Perth showing the greatest price growth over the last year (12.73%), quarter (2.23%) and month (2.21%) for any capital city. Unit prices have grown 9.29% per year over the last 10 years, beaten by 10.75% in Darwin.

The median unit price in Perth is now $430,000.

Unit rents are up 20.83% for the year to $435 per week. The next highest increase was 20% in Sydney, where unit rents are now $540 per week.

There were 11,808 unit sales in Perth over the last year, up 15.81% over the previous year.

Across Australia house prices are up 0.94% for the month and unit prices are unchanged.

Over the last month house prices fell in Darwin, Adelaide and Brisbane. Unit prices fell in every state capital except Sydney and Perth.

Sydney is still by far the most expensive place to buy a house or apartment. The median house price is $668,500, more than $100,000 more expensive than Melbourne, the next highest. Sydney unit prices are $498,000, more than $60,000 more than Melbourne.

Residex says its latest figures are good for home owners, putting the Reserve Bank in good stead for another rate cut.

“The potential rate cut comes on the back of an improving housing market Australia wide, and additional rate cuts should help ensure the market remains stable and leaves adjustment phases recently seen in many markets behind,” Residex chief John Edwards says.

Edwards says some people may see the conditions as the possible makings of a housing bubble but he says that is not the case.

“Affordability is still not terrific in the major capital cities, even with the interest rate reduction… The unit market is affordable, the house and land market in Melbourne, Sydney, Perth and Darwin are unaffordable, and some of the others are marginally affordable.”

He says consumer confidence is low and the unemployment rate is likely to rise which will be countered by increased building projects.

“Overall, if there is a housing bubble risk, the markets to watch are unit markets, in particular those where there is currently a stock shortage. In essence, the main risk is Perth and to a lesser extent, Brisbane.”