Perth House Prices Stabilize as Sales Figures Scale up

An image of Perth, Western Australia

New housing data from Real Estate Institute of Australia (REIWA) shows that Perth House prices stabilized during the last month of March. Alongside this, sales in the Metropolitan region have shown a 15% rise over the last three months i.e. January to March 2016. REIWA President, Hayden Groove has confirmed that the median price for Perth houses stabilized at $535,000 since January to March. There was a slight reduction in house prices as from December 2015. The three months of September to December 2015 were the most unstable holiday season for home prices. To Groove, the trend is not strange as there’s some unpredictability during festive seasons that can alter housing data.

The surge in sales figures was experienced across all the sub-regions. However, the North and South-West encountered the highest hike in sales of up to 23%. Hayden affirms that elsewhere at the sub-market level, Canning Vale, Baldivis, Ellenbrook, and Morley performed pretty well recording the highest sales figures over the month of March. Generally, sales listings in the entire Perth were somehow stable during the month of March with a rise of only 2 percent and a difference of 7 percent compared to the last quarter. Mr. Groove, therefore, ascribes the elusive surge to the typical robust autumn season in Perth real estate market. Buyers, therefore, have a plethora of choices despite the stabilization in house prices. The small rise in prices implies that the standard market flooding is slowly vanishing. Flooding in the market has been a common trend during the same time of the year over the past years.

Street in Morley, Western Australia
Morley, Western Australia

Across the month of March, rent prices in Perth steadied with a median house rent figure of $400 and a $380 median unit rent per week for the last quarter. The latest population data from the Australia Bureau of Statistics shows that there was a net increase in overseas immigration from September 2015. Consequently, vacancy rates experienced a slight shift from 5.9-6 percent for the last three months. Mr. Groove attributed the shift to increased overseas migration to the state and is the reason rental market prices showed some stabilization.

Furthermore, rent listings were relatively solid with a negligible change from 4 percent to 5 percent from January to March. According to Mr. Groove, the Perth Real Estate market is slowly transforming with the statistics of the last quarter bringing in more stability and balance. Soon, Perth rental market will be somehow predictable if the trend continues.