As Western Australia's economy slows its property market is easing
The Perth market has seen limited movement over the year to August, with RP Data reporting growth of just 3.5 per cent in the period. In the three months to August, the market slowed further, with values increasing by just one per cent. Data from the REIWA shows activity in Perth has begun to drop off in recent months. The median price remained unchanged over August but sales volumes began to contract. Over the three months to August, sales turnover in the city decreased by 25 per cent, with the greatest drops happening in Stirling, Fremantle, Vincent and Kwinana.
As a result of weak buyer activity, listings in the city are starting to nudge upwards. According to SQM Research, stock on market is up by 5.1 per cent over the year, a period where most other cities saw stock levels fall. The REIWA reports Bayswater and Vincent are particularly affected by these trends.
Despite Perth’s poor results this year, prices remain elevated compared to other cities of a similar size. Just 16.4 per cent of properties in the city cost less than $400,000, RP Data reports. Across the city, 54 suburbs have a median house price over $1 million and in two suburbs, even units have a $1 million-plus median.
However, affordable properties can still be found within the Perth city limits. RP Data reports the cheapest area within 10 kilometres of the CBD is Glendalough. This suburb has a median price of just $438,995, well below the Perth median. Other affordable inner-ring areas include Osborne Park, Westminster, Nollamara and Redcliffe.
According to SQM Research, vendors in some areas of the state are beginning to slash their asking price. Western Australia has four of the country’s 10 most discounted property listings, two of which are found in Carabooda.
As an example, 292 Carabooda Road was originally listed for $1.65 million. After more than a year on the market, the vendors are now asking $1,032,000, a cut of 37 per cent. Another property at 219 Bernard Road North has been discounted by 35 per cent and is currently listed for $2,272,000.
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