The Perth housing market has continued to experience substantial gains in terms of sales and rentals in the luxury segment, but the lower market suburbs are quickly catching up, according to the latest report from the Real Estate Institute of Western Australia (REIWA).
About 64% of Perth's suburbs reported "statistically significant" activity in December, resulting in a stable increase in the median price of homes.
Of all the suburbs, Applecross recorded the largest growth in the median price at 3.2%, followed by Rockingham at 2.1%, North Perth at 1.5%, Butler at 1.4% and High Wycombe at 1.3%.
Five of the 10 best performing suburbs in terms of median sales price growth had a median value less than $ 479,000 in Greater Perth.
"It is nice to see that the upper end of the market continues to work well and the lower end is starting to see improvements. Trade buyers are the most active and currently account for 53% of demand, in line with previous improvements. seen at the top, "said REIWA President Damian Collins.
Read also: 2019 ends with price increases
However, this could change to the extent that the lower suburbs attract first-time home buyers and more investors to the market.
Collins said that listings fell in December, with the number of properties available for sale decreasing 12% on a monthly basis.
"With registrations decreasing and the average number of days on the market decreasing to 67 for accommodation, the current stock is being absorbed quickly. Therefore, buyers are advised to keep this in mind when looking for their next property, "he said.
Rental property listings had a similar story – REIWA figures show that the stock of listings further decreased by 7% in the last month of 2019. The recent drop brings total listings down 18% compared to the previous year.
"This reduction in listings, combined with stable rental prices and healthy rental volumes, pushed Perth's vacancy rate to 2.3%, the lowest level Perth has experienced since February 2019, "said Collins.
Despite the limited supply, the median weekly rent remained at $ 350. Collins said it could change if the rental market stays on its upward trajectory.
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