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Perth's property market is on the rise with increased sales activity and record median house prices, according to new data.
The Real Estate Institute of Western Australia (REIWA) March quarter data revealed that turnover increased by 14 per cent across the state in the quarter as consumer confidence returned to property.
REIWA president David Airey said the surge in sales saw’s median house price rise by at least $5,000, and would likely jump up to $10,000 with late settlements.
“It seems we have a new record for Perth’s median house price of $510,000, but it’s important to note that this is due largely to the composition of sales in which a greater volume of more expensive homes were being purchased,” he said.
Across the state, there were 13,200 transactions, up from 11,600 in December and up by 12 per cent on the same time last year.
The median prices for units, apartments and villas, which climbed $10,000 to $425,000, outperformed houses during the same quarter.
Mr Airey said this growth had been pushed along by strong first home buyer activity.
The number of selling days, which now sits at an average of 57 days, has started to move after being stagnant for a while, with old stock also starting to shift.
During the quarter, half of all sellers were prepared to drop their asking price, and of those who did, the average gap between the asking and selling price was a drop of 5.6 per cent.
“This ‘seller sentiment’ has hardly budged over the last nine months but is to be expected given that the market has swung back to favour them," Mr Airey said.
“We see this through the emergence of price-bidding and multiple offers and with some vendors exceeding their asking price.”
With rents up by 4.4 per cent during the quarter, Perth’s median rent now sits at $470 per week, around $480 for a house and $450 for a unit or villa.
Mr Airey said he believes the large number of tenants ending their lease to buy their first home contributed to the relaxing vacancy rate and that he would not be surprised if rents came down in the June quarter.