Perth house prices moderate

Perth house prices moderate

Posted on Friday, June 06 2014 at 11:41 AM

The Real Estate Institute of Western Australia (REIWA) has reported a moderation in Perth’s median house price.

According to new data, Perth’s median house price reduced 0.7 per cent
over May to $548,000.
REIWA president David Airey said the results were in-line with market
predictions from the March quarter.

“The evidence suggests that Perth peaked in the first quarter of the
year but dipped in the three months to April and then a little further in the
month of May,” Airey says.

REIWA data shows that sales activity rebounded by 18 per cent in May
after a weaker market in April, however the numbers of sales transactions is
down five per cent on the same time last year.

In May, early indications were that stronger sales activity were
recorded in the northeast region of Perth through the City of Swan and Shire of
Kalamunda, while Gosnells in the southeast region also performed well.

“The numbers of properties on the market is trending back strongly
towards Perth’s long term average, up by 16 per cent in the three months to May
and putting 10,665 properties up for sale,” Airey says.

“This is a reflection of a range of factors but most notable is weak
interest from investors and much slower activity from first homebuyers.
Together this is adding to stock.”

Perth’s rental market was largely unchanged with a small rise in the
numbers of available properties and the median rent staying the same.

“It appears that northeast parts of Perth, including the City of Swan
and Kalamunda, experienced the highest percentage of new rentals coming onto
market, followed by Kwinana and Rockingham in the southwest region,” Airey says.

“There are now almost 5400 rental homes across the metropolitan area
available for lease and typically these rent for $440 per week for a unit or
villa and closer to $460 per week for a house.”

Perth’s rental vacancy rate continues to hover around four per cent.

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