One of Australia’s most pronounced recovering markets saw February record nearly half of all sales under $500,000, a consistent trend for the last three months, new data shows.
The month of February saw 49 per cent of allproperty sales selling for under $500,000, data from the Real Estate Institute of Western Australia reveals.
With Perth’s median declining in February by 1.5 per cent to $438,952 according to CoreLogic, REIWA president Damian Collins said the data indicates the lower end of the market was the more favourable by buyers.
“Almost half of all transactions occurred below $500,000 in February, which is a trend we’ve observed for the last three months,” Mr Collins said.
“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.”
Further, 13 suburbs saw rising popularity through increased sales activity for the month, which were Karrinyup, , Hamilton Hill, , 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.
Despite the trend pointing towards the lower end of the market, the fastest selling suburbs were found in the higher end of the market, with the 10 fastest selling suburbs for the month being Duncraig, Willetton, Palmyra, Doubleview and Padbury, Woodvale, , Ocean Reef, North Perth and Sorrento.
“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’s rental market sees slight increase
While Perth’s overall weekly rent has held at $350 per week for a long time, 37 suburbs saw a median rent increase, with Cottesloe, Shenton Park, Kingsley, East Fremantle and rounding out the top five, which Mr Collins said was an encouraging sign.
“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.
Leasing activity rose by 6 per cent in the overall Perth market 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.