Signs point to lift in lo­cal prop­erty mar­ket

Eastern Reporter - - News -

ACROSS the board in­creases in sales vol­umes, lower stock lev­els in both the sales and rental mar­ket and more ac­tiv­ity in the trade-up mar­ket herald an im­prove­ment in the WA prop­erty mar­ket, ac­cord­ing to REIWA pres­i­dent Hay­den Groves.

“I think the mar­ket has been at the bot­tom for the last six to nine months and is start­ing to tran­si­tion,” he said.

“We’re see­ing more sales but down­ward pres­sure on list­ing stock de­spite the fact that spring is here, and for the first time in a num­ber of years the sup­ply of rental stock is fall­ing at the same time.”

Mr Groves said the con­di­tions had created an in­ter­est­ing sit­u­a­tion, typ­i­cal of a tran­si­tional mar­ket.

“There’s been down­ward pres­sure on prices, de­mand is still pretty soft, as is the WA econ­omy, so if peo­ple haven’t had to sell they’ve held off; that’s why sales vol­umes have been so low.” he said.

“Sud­denly, in some ar­eas, sup­ply lev­els have tight­ened to such an ex­tent that it’s put­ting up­ward pres­sure on prices.”

Sev­eral sub­urbs across Perth have al­ready recorded strong me­dian house price growth, ac­cord­ing to the lat­est data from reiwa.com.

Cottes­loe recorded the high­est growth at 18.2 per cent in the 12 months to June, fol­lowed by At­tadale (17.7 per cent) and Sal­ter Point (17.5 per cent).

Two Al­bany sub­urbs were also among REIWA’s top 10, with Lower King record­ing 12.7 per cent me­dian house price growth and Yakamia in­creas­ing by 11.9 per cent.

Most of the growth was across Perth sub­urbs in the $800,000$1.2 mil­lion price bracket, re­flect­ing greater ac­tiv­ity in the trade-up mar­ket.

Mr Groves said when this sec­tion of the mar­ket started to move, the me­dian house price would start to rise.

“I ex­pected to see the Perth me­dian house price in­crease in the June quar­ter as a re­sult of the greater ac­tiv­ity at the higher end of the mar­ket, but that didn’t even­tu­ate.” he said.

“I’m more cau­tious to call it now but would not be sur­prised to see the me­dian price rise in the Septem­ber quar­ter, through to De­cem­ber and March next year.”

Hay­den Groves

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