Published on February 7th, 2013
REIWA sees Perth real estate values increase in Q4
The Real Estate Institute of Western Australia (REIWA) has found that median house values in Perth increased towards the end of 2012.
The December quarter recorded a three per cent rise in the median value of Perth real estate – up three per cent to $495,000.
This is just short of the all-time record for Perth property, with $502,500 being the median value for real estate in March 2010.
REIWA president David Airey said the boost in the residential real estate market can be attributed to a surge in transactions at the higher end of the market – specifically in the $600,000 to $700,000 range.
He added that first home buyer activity has increased, so vendors of affordable property have seen a rise in interest.
He explained: "Strong first home buyer activity is a terrific stimulus for the entire housing system.
"This scenario is reflected in the fact that the top two suburbs for price growth in the December quarter were outer-suburban, affordable Calista and gentrified upper-market Mount Lawley."
Units and apartments have enjoyed a two per cent rise over the three months to December, climbing to $410,000 – but the growth has generally been concentrated to inner-city suburbs where demand has been stronger for those types of properties.
Data from the REIWA has also found that the number of days that properties are on the market has fallen from 71 to 61. In addition to that, the percentage of vendors reducing their asking price has dropped from 60 per cent to 55 per cent.
Mr Airey said this represents an improving real estate market where vendors are pricing their properties better and buyers are acting quicker.
The president mentioned that of those who discounted their properties, the average amount of discounting was 5.5 per cent – a figure which is also trending downwards.