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SOURCE: Real Estate Institute of Western Australia
Buoyed by consumer shift to higher priced properties and increased first-time homeowner activity, the Perth property market finished 2012 strong, posting its biggest gains in December.
Perth, Australia (PRWEB) January 24, 2013
Preliminary data obtained by property portal Reiwa.com.au indicate a 3% increase in Perth median house prices from September to December of last year. From a median price of $480,000, houses in Perth now have a median price of $495,000.
The surge in median house prices is being attributed to the shift of focus of home buyers to higher priced properties from properties priced below $350,000. Concurrently, properties listed between the $350,000 and $400,000 price range also performed well. Also noteworthy is the fact that the shift in consumer preference has buoyed median housing prices despite insignificant change in the volume of turnover in the multi-residential market.
“Overall sales increased by 4 per cent in the quarter with increased activity in the higher price ranges. We have recorded more activity in the $600,000 to $700,000 range, as well as with homes over $800,000," Real Estate Institute of WA (REIWA) president David Airey divulged.
Perth's western suburbs are the clear beneficiary of this shift in consumer choice in properties as they registered a 57% increase in turnover. Joondalup City's southern area and Stirling City's western part also registered significant gains, posting 9% and 6% increases, respectively.
On the other hand, the same data procured by Reiwa.com.au showed some good news for tenants. With regard to rental properties, Perth landlords report that vacancy rates grew from 1.8% to 1.9% and rental prices declined by $10 per week during 2012's last quarter. From 11,500 new leases recorded in the third quarter of 2012, new leases in the last quarter fell to only 11,200 or a 3% change.
“Our data show that while the median rent for a house lifted by $10 to $460 per week, the median rent for strata dwellings such as units, apartments, villas and townhouses fell by $10 to $420 per week,” Airey explained.
The change can be attributed to the decrease in demand against an increase in listings during the last quarter of the 2012.
However, Airey cautioned that median rent will eventually pick up as the new year unfolds, propped by an increase in demand and a drop in demand.
“Despite the modest drop in price for units and apartments in the last three months of 2012, we need to keep in mind that the March quarter is always the strongest period in the year for rental activity, so this drop may only be a temporary reprieve for tenants," Airey concluded.
To learn more about REIWA services and for accurate and current market data about the Western Australia property market, visit Reiwa.com.au.
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