Kwinana Courier - - Residential -

THE Perth prop­erty mar­ket wrapped up 2017 on a pos­i­tive note, with De­cem­ber quar­ter data top­ping the pre­vi­ous quar­ter.

“Tra­di­tion­ally, the Septem­ber quar­ter out­per­forms the De­cem­ber quar­ter, but that wasn’t the case in 2017,” REIWA pres­i­dent Hay­den Groves said.

“The De­cem­ber quar­ter is on track to record 14 per cent more sales than the Septem­ber quar­ter.”

Speak­ing at the Aus­tralian Prop­erty In­sti­tute 2018 Res­i­den­tial Prop­erty Out­look break­fast on Tues­day, Mr Groves said the Septem­ber quar­ter sales fig­ures were the low­est go­ing back 27 years.

He said 2017 was likely to have fewer sales than 2016 due to the piti­ful Septem­ber quar­ter.

Mr Groves said it boded well for Perth that key in­di­ca­tors – in­clud­ing me­dian prices, sales ac­tiv­ity, list­ing lev­els and av­er­age sell­ing days – had im­proved over the quar­ter.

“We now ap­pear to be en­ter­ing a re­cov­ery phase, though REIWA re­mains cau­tious about ex­pec­ta­tions of rapid growth in the next 12 months,” he said.

How­ever, mar­ket im­prove­ment was not across the board.

“In the De­cem­ber quar­ter, there were in­creased sales in the $700,000 to $800,000 price bracket, which has seen the me­dian in­crease, while firsthome buy­ers have gone quiet in the $350,000 to $400,000 bracket,” Mr Groves said.

“It is too early to say if this trend will con­tinue in the March quar­ter but buy­ers are ac­tively look­ing for trade-up prop­erty right now while the lower end is still over­sup­plied.

“In that way we have a twospeed mar­ket in Perth at the mo­ment; trade-up ac­tiv­ity go­ing nicely and the lower end start­ing to strug­gle a bit.”

Perth’s pre­lim­i­nary me­dian house price in­creased 1.2 per cent to $516,000 in the De­cem­ber quar­ter 2017.

“On an an­nual ba­sis, the Perth mar­ket is very sta­ble; we’ve ob­served con­sis­tent price lev­els be­tween the De­cem­ber 2016 and 2017 quar­ters, which is a strong sig­ni­fier the mar­ket has turned a cor­ner,” Mr Groves said.

There were 4946 dwelling sales in Perth in the De­cem­ber quar­ter.

Mr Groves said this fig­ure was ex­pected to lift to 6700 once all sales had set­tled, putting it sig­nif­i­cantly above the Septem­ber quar­ter sales fig­ure.

With 13,088 prop­er­ties for sale in Perth at the end of the De­cem­ber quar­ter, Mr Groves said this was on par with the Septem­ber quar­ter fig­ure and 6 per cent less than the De­cem­ber 2016 quar­ter fig­ure.

“With buyer ac­tiv­ity in­creas­ing, stock lev­els are be­ing ab­sorbed faster,” he said.

It was 10 days faster to sell in the De­cem­ber quar­ter than it was in the Septem­ber quar­ter, with it tak­ing on av­er­age 60 days to se­cure a sale.

“It’s been two years since it was this quick to sell in Perth,” Mr Groves said.

“The com­bi­na­tion of sell­ers’ pre­pared­ness to meet the mar­ket and buyer ap­petite for well-priced prop­erty has sig­nif­i­cantly short­ened days-on­mar­ket.”

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