Preliminary analysis of the latest quarterly data shows that Perth’s property market is counter-cyclical to the Melbourne and Sydney markets across all sectors throughout the 2015 September quarter.

Houses and units

REIWA President Hayden Groves said Perth’s moderating housing market presented fantastic opportunities for buyers to secure property at a more affordable price with houses and units both posting declines to their median house price in the quarter.

“The median house price for the September quarter came in at $522, pill 133, an adjustment of 4.2 per cent on the revised June quarter median of $545,000, while units and apartments edged back 2.3 per cent to $420,125 from the revised June quarter figure of $430,000,” Mr Groves said.  Mr Groves said the data showed that in terms of the quarterly change in the annual median, there were some new comers to the top performing suburbs list.  “The best performing suburb was St James in Perth’s central sub-region, which topped the list with a 5.1 per cent increase to its quarterly annual median, followed by Mount Claremont with 4.5 per cent,” Mr Groves said.

Listings

Throughout the September quarter, the stock of listings for sale hovered above the long term average of 12,000 to sit at around 15,100 for the quarter.  Over the past week, listings for sale in Perth have nudged over the 16,000 mark, levels not seen since the immediate post GFC days.  “With these stock levels of property available in Perth, prospective buyers considering a purchase in the WA property market are under less pressure to make a hasty buying decision,” Mr Groves said.

Sales Volumes

While reiwa.com data shows that sales volumes have dipped during the September quarter, there was a slight increase in volumes last week to take the range to between 500 to 700 sales per week since April this year.  “We estimate that total dwelling sales for the quarter will come in at around 8,600 sales across WA, below the average and fewer than the June quarter, although the winter months normally return a subdued sales volume measure,” Mr Groves said.

Selling Days and Discounting

As to be expected, present market conditions had an influence on selling days and discounting across the quarter.  “The average number of selling days for the Perth metro region is now at 62 days, which is up five days on the June quarter, while 53 per cent of vendors needed to discount their asking price in order to sell,” Mr Groves said.

First Home Buyers

The $3,000 First Home Owners Grant for established homes was officially abolished on 3 October.  Mr Groves said the news of this impending cut had had an impact on first home buyer grant activity.  “As expected the Government’s decision to cut this grant for established homes saw a spike in grant activity in September as first time buyers rushed to meet the cut off.

Rental Market

The median rent price for both houses and units in Perth retreated across the quarter, with the overall median dropping $20 to now rest at $400 per week, which breaks down to $420 for houses and $395 for units.  Mr Groves said WA’s rental market was feeling the impact of slowing population growth coupled with improved housing supply.

The rental vacancy rate for the three months to September sits at 5.6 per cent in the Perth metropolitan area availing tenants plenty of opportunities to secure an affordable home in a central locale.

*Source REIWA

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