The Western Australian capital concluded 2020 on a property sales high, as forecasts for the coming year predict further price growth of between 6 and 10 per cent.
With a significant increase in sales activity and a stable median house price,continues to be deemed favourable for both investors and buyers, according to the Real Estate Institute of Western Australia (REIWA).
REIWA president Damian Collins has flagged that December bucked the usual year-end trend, posting a 42.5 per cent increase in buyer activity across the Western Australian capital market on December 2019 results.
A total of 3,067 transactions were reported for the month.
Mr Collins explained that “traditionally, December experiences a reduction in the number of house sales due to buyers going away for the festive period, yet this year we have seen a significant increase in buyer activity, which suggests that people are taking advantage of the market conditions whilst they are unable to travel.”
Despite the increase in sales, agents on the ground have been reporting a -16.5 per cent decrease in listings for sale across the month.
It led Mr Collins to consider: “It is only a matter of time before median prices start to increase.”
The REIWA is forecasting Perth’s median price to grow by 6 to 10 per cent over the coming year.
Perth’s median house price remained stable in December to sit at $480,000. Data from REIWA showed that 45 per cent of suburbs saw an increase during the month.
After crunching the data, REIWA was able to reveal the suburbs that saw the most growth over December:
1. Kelmscott: 6.2 per cent increase to $375,000
2. Yokine: 4.8 per cent increase to $650,000
3. Wellard: 4 per cent increase to $399,500
4. Girrawheen: 4 per cent increase to $310,000
5. Applecross: 3.4 per cent increase to $1.5 million
Ultimately, the figures mean Perth remains a favourable market for buyers and investors, according to Mr Collins.
But with the median price expected to continue climbing through 2021, “I would advise those who are thinking about purchasing their first home, trading up or investing, to act soon before prices inevitably rise,” Mr Collins concluded.