Perth Market – Up or Down??

I came across this article posted on Wednesday (July 31st) entitled “Perth housing now strongest vendors’ market since 2006: MacroPlan Dimasi”, by Larry Schlesinger . It starts out by saying:

“Vendors will continue to have the upper hand in the Perth residential market due to not enough new houses being built to satisfy the city’s growing population…”

This data is three months out of date. Ignore it.

If you really want to know what is happening in the real estate market ask the people who work at the coal face every day.

A more realistic appraisal of the Perth real estate market is set out in this article from David Airey at reiwaviews.com.au

“The Real Estate Institute of Western Australia today released its market snapshot for the three months to July. The reiwa.com data show there was a 1 per cent fall in the June quarter median house price during the three months to July.

This puts the current median house price at around $520,000.

The City of Belmont, in particular, saw a 30 per cent jump in sales during this period, while in contrast the sub-region of Bayswater-Bassendean saw a 38 per cent fall in turnover.

However, it should be noted that these are small markets and there has been a general softening in sales since April. Sales turnover for the month of July itself showed a 5 per cent fall across Perth with 2003 house transactions taking place.

Softer sales have been reported by REIWA members in several of the more expensive western suburbs market, the coastal areas of Stirling and the City of Vincent which have all contributed to the fall in the overall median.

There are currently 8,835 properties on the market representing almost no change on the previous three months and a drop from 11,397 in July 2012.

There was a big jump in the number of listings in the City of Perth (26 per cent), with similar rises in Belmont, Bayswater and Bassendean of between 23 and 24 per cent. The southern part of the City of Wanneroo, including areas such as Marangaroo, Landsdale and Darch, saw the biggest drop in listings of 19 per cent.

In the rental system there are currently, 4,046 properties up for lease. This represents no change on the previous three months but represents a big jump from just 2,400 rental properties in August last year.
Median rents in Perth are stable at around $480 for a house and $455 for a unit, apartment or villa.

This article was originally posted on reiwa.com.

About Bernie Kroczek

Bernie Kroczek has been in real estate for over 26 years. He prides himself on offering an alternative to the usual way of doing real estate. He also likes to offer plenty of free information to help people make the best decision when buying or selling property.

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