Amid economic uncertainty, Perth property values have outperformed its six-month pace of growth as sellers remain resilient.
Despite a slowdown in buyer activity, research firm CoreLogic revealed the Western Australian capital recorded its sixth consecutive month of price growth in April, with values rising 0.2 per cent across the month to take quarterly growth figures up to 1.0 per cent, property investment consultancy Momentum Wealth said.
Sales transactions inalso rose for the third consecutive week as buyers re-enter the market and quality stock remains limited.
Continued price growth, tightening supply and an early rebound in sales transactions are placing Perth’s property market in strong stead for a faster rebound than other major markets across Australia.
In fact, Perth was one of three capital city markets to outperform its six-month average pace of change alongside Darwin and Adelaide.
Chair of Momentum Wealth’s residential investment committee Emma Everett said that the trend could be attributed in part to strong seller resilience.
“While we did see a sharp drop in buyer activity at the end of March through to April, this was largely offset by a corresponding decline in listings for sale, including an increase in withdrawn listings, so we didn’t see high levels of seller competition or conditions conducive to widespread price discounting,” she highlighted.
“This is a positive sign that sellers have remained resilient despite economic uncertainties, and with stock on market continuing to tighten as a result, we are now in a strong position to maintain this price stability as buyers start to re-enter the market.”
According to data from the Real Institute of Western Australia (REIWA), the number of properties listed for sale in Perth dropped to 11,611 in the week ending 10th May – 30 per cent lower than the same period in 2019.
Meanwhile, the property market recorded its third consecutive week of rising sales transactions following the initial decline, up 32.7 per cent across the week to 527 sales.
Leasing activity was also up 31.5 per cent for the week ending 10 May, with rental listing stock levels resuming a downward trajectory following a previous 4 per cent rise in rental stock in April.