Perth update: Prices, first time buyers and rental market

The Real Estate Institute of Western Australia has released new statistics on Perth’s property market, with some interesting conclusions.

REIWA’s president David Airey said that the preliminary market information available looked as though the median house price was down by 1%, bringing the March quarter median to $545,000 from $550,000.

A surge in apartment pre-sales was noted and Landgate’s early data is showing stability in the multi-residential median price at $449,500.

“However, in the REIWA analysis we include off the plan pre-sales that take some time to settle, so our figures indicate the median sale price for units and apartments lifting by 5% in the quarter to around $470,000,” Airey said.

Here’s their round up of what is happening in Perth.

First home buyers

• Rebound in activity
  
  
• Transfer duty changes on 1 July may have had an effect
  
  
• Strong sales activity in $400,000 to $500,000 range

Turnover and stock

• Sales for Western Australia down 6% over the quarter
  
  
• Landgate estimated 11,900 dwellings transacted
  
  
• Downward trend continuing since March quarter 2013
  
  
• June quarter results will but sales 5% below 15 year average in Perth
  
  
• June quarter results will but sales up to 22% below 15 year average in regional Western Australia
  
  
• Stock on market lifts to 8% to 10,872 properties
  
  
• Land listing jumps 12% to 1,449 lots
  
  
• Increase in listings now up almost 25% since last year

“REIWA data show that reported sales dropped across most of Perth, with the central area within 10 kilometres’s of the CBD experiencing the biggest drop of 6%. This contributed to the fall in the overall median due to the softening of sales in the $500,000 to $900,000 range,” said Airey.

“However, the western suburbs saw an increase in activity among homes selling for between $1 million and $1.5 million, while the most notable drop in sales was seen through South Perth and Victoria Park with a slump of 31% in the quarter.”

In the outer regions of Perth the picture was a little more mixed, with an increase in sales seen in the north coastal part of the City of Wanneroo.

Overall, most house price changes remained muted at 1 or 2%. In the City of Canning, 4% growth was seen, while the northern part of Joondalup and southern part of Wanneroo saw 4% falls.

Days on market has remained fairly stable, up just one day to 57 days.

DAYS ON MARKET AND DISCOUNTING

“As a consequence, the number of sellers reducing their asking price grew further to almost half, although the variance between asking prices and selling prices tightened a little to just over 5% in favour of the buyer,” Airey said.

And yet it’s the rental accommodation market that has seen the most changes and is worthy of a closer look.

Rental market

• The vacancy rate has increased to 4.2%
  
  
• median rent drops $10 to $450 per week
  
  
• Number of rental listings grew by 858 properties over the quarter to 5,824 total

“This is a significant increase of 43% on the same time last year, while more current REIWA data shows this has since grown further to more than 6,000 properties by the middle of July,” said Airey.