Perth median house price stabilises in December

A Report from REIWA

Boost to Keystart a win for WA home buyers
07 December 2018

Perth’s median house price has stabilised, with reiwa.com data showing it held at $510,000 in December.

REIWA President Damian Collins said while the December median house price for the Greater Perth* area was unchanged compared to November 2018, it had increased 2.6 per compared to September 2018.

“Overall, the median sale price of houses is holding up well in Greater Perth, which is good news as the market transitions towards a recovery,” Mr Collins said.

While reiwa.com data shows the Perth median house price has stabilised, the latest figures from CoreLogic, show house values declined one per cent in December.

“CoreLogic’s Hedonic Values Index aims to capture the entire property market including what has and has not sold recently. Their latest House Value Index shows the Perth market is still patchy, which is not surprising given tighter lending restrictions have made it more difficult for Perth buyers to secure finance,” Mr Collins said.

“Median prices provide a good indication of market trends, however it is important to take a closer look at how individual sectors are holding up. For example, although overall sales are down in Greater Perth, reiwa.com data shows activity in the $800,000 plus price range has strengthened,” Mr Collins said.

There were fewer properties for sale in December than November, with reiwa.com data showing listings for sale declined nine per cent during the month.

The five Perth suburbs to record the biggest reduction in listing stock (percentage wise) during December were Trigg, Hilbert, Gwelup, Parkwood and South Fremantle.

“After observing a surge in listing stock during spring, listing volumes were more subdued in December, which is very typical as vendors are generally less inclined to try and sell during the holiday season,” Mr Collins said.

Perth rental market
Listing stock in Perth’s rental market continued to plummet in December, declining a further six per cent to 6,865.

“In addition to the decline we’ve seen during the month, listings are now a staggering 27 per cent lower than they were a year ago,” Mr Collins said.

“This significant reduction in listings, combined with stable rent prices and healthy leasing volumes, has pushed the Perth vacancy rate to 2.9 per cent, the lowest level Perth has experienced since March 2013.”

Perth’s overall median rent price remained at $350 per week in December 2018.

“While the overall median was stable, when we isolate rent prices to just houses, Perth’s median house rent increased $8 to $360 per week in December, which is very encouraging,” Mr Collins said.

“Traditionally the first few months of the year are a busy time for leasing activity. If the rental market remains on its current upward trajectory, we should see rent prices increase throughout the year, which should entice investors back into the market.”

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Perth median house price stabilises in December