Perth property market operating at three speeds: RE/MAX's Geoff Baldwin

The Perth property market is sending confusing mixed messages to sellers and buyers as it is operating at different speeds in line with asking prices, according to RE/MAX WA managing director Geoff Baldwin.

Baldwin says the local market is being driven by vigorous competition for properties under $600,000. 

Baldwin says this lower priced stock is attracting multiple offers and sale prices at or even over the asking price.

Attracting fewer and more circumspect buyers is property priced betweeen $600,000 and $1.5 million.

“The $600,000 to $1.5 million price range is starting to see the feed through from this activity however certainly at a slower pace and with buyers being a lot harder on price.”

Meanwhile, Baldwin says above $1.5 million, buyers remain few and far between and sales in this range are still tending to be heavily discounted when compared to the lower ranges.

Baldwin expects the Perth median price to start to push back up to or even beyond the previous record high, due to the frantic buying activity in the sub $600,000 market.

Earlier this week, the Real Estate Institute of WA (REIWA) reported that Perth's median house price reached a record high of $510,000 in the March quarter surpassing the previous peak of $505,000 in the March quarter of 2010.

The REIWA reported that homes selling for $600,000 to $700,000 and those between $800,000 and $1 million represented around 20% of all sales during the quarter.

“Collectively and in most cases individually, RE/MAX WA offices have just recorded best quarter in the history of the group and there is no sign of this demand subsiding any time soon," says Baldwin.

“News of this renewed buyer interest is causing owners of higher priced properties to raise their expectations and in many cases stopping sales."

RE/MAX WA predicts that the higher priced market will slowly recover, as those in the lower ranges will eventually sell and buy up into better property.