Half of all home sales in Perth occur below $500,000 in February
Forty-nine per cent of home sales in Perth occurred below $500,000 in February, according to the latest reiwa.com data.
REIWA President Damian Collins said while CoreLogic’s Home Value Index showed prices in Perth had declined 1.5 per cent to $438,952 in February, reiwa.com data shows the composition of sales during the month favoured the lower end of the market.
“Almost half of all transactions occurred below $500,000 in February, which is a trend we’ve observed for the last three months. When we take a closer look, 32 per cent of sales last month were between $350,000 and $500,000, while 17 per cent were below $349,000.
“Traditionally, when there is a greater proportion of activity occurring below $500,000, this indicates first home buyers are on the move,” Mr Collins said.
Perth’s top-selling suburbs in February were Baldivis, Morley, Willetton, Canning Vale and Dianella.
reiwa.com data shows there were 13 suburbs that saw sales activity increase in February; Karrinyup, Bayswater, Hamilton Hill, Sorrento, Aveley, Waikiki, Tapping, Morley, Ocean Reef, Mullaloo, Yangebup, Rockingham and Greenfields.
“Of these 13 suburbs, eight had median house prices below the Perth median, with Karrinyup, Bayswater, Sorrento, Ocean Reef and Mullaloo the only exceptions,” Mr Collins said.
While the majority of sales in February occurred within the first home buyer price range, reiwa.com data shows the fastest selling suburbs were all from the higher end of the market.
Duncraig, Willetton, Palmyra, Doubleview and Padbury, Woodvale, Scarborough, Ocean Reef, North Perth and Sorrento were the 10 fastest selling suburbs in February, all recording average selling times significantly below the Perth average of 76 days.
“Seven of these fastest selling suburbs have median house prices above $600,000, which indicates buyers are needing to act quickly in Perth’s trade-up and luxury markets to ensure they secure the property,” Mr Collins said.
Perth rental market
There were 37 suburbs in Perth that saw their median rent price increase during the month.
The five suburbs to record the biggest increase in median rent (percentage-wise) were Cottesloe, Shenton Park, Kingsley, East Fremantle and Redcliffe.
Mr Collins said while Perth’s overall median rent price continued to hold at $350 per week, it was encouraging to see a substantial portion of suburbs start to see positive price movement.
“Perth’s overall median rent has been stable for an unprecedented amount of time. With an increasing number of suburbs starting to see rents increase, it’s only a matter of time before the Perth median rent follows suit, which will be a welcome development for landlords,” Mr Collins said.
reiwa.com data shows 75 suburbs recorded an increase in leasing activity, with Bull Creek, Queens Park, Parkwood, Wilson and Willetton the top performers in February.
“On an annual basis, leasing activity in the overall Perth market is up six per cent compared to last February. As we head into March, which is traditionally one of the busiest months of the year for the rental market, we should see tenant activity continue to build, creating more competition in the market and putting upward pressure on rents,” Mr Collins said.