Lux­ury sells faster in slow mar­ket

Western Suburbs Weekly - - Food -

WHILE the over­all Perth mar­ket was fairly sub­dued in 2018, sev­eral sub­urbs, in­clud­ing two in the west­ern sub­urbs, saw sig­nif­i­cant price in­creases over the year.

REIWA has pub­lished its top 10 sub­urbs for me­dian house price growth for 2018 and five of the 10 achieved over 20 per cent growth.

Brab­ham topped the list with a 31.8 per cent in­crease in its me­dian house price.

It was the most af­ford­able sub­urb on the list and the only one with a me­dian house price be­low Perth’s over­all me­dian price for the year.

“Brab­ham ex­pe­ri­enced sub­stan­tial growth last year, with its me­dian in- creas­ing from $305,000 to $402,000, with Madora Bay com­ing in sec­ond, with its me­dian lift­ing 28.7 per cent to $560,000 dur­ing 2018,” REIWA pres­i­dent Damian Collins said.

“How­ever, cau­tion should be ex­er­cised in trans­lat­ing these fig­ures to the val­ues of the prop­er­ties in these ar­eas. Sub­urbs with newer stock can see changes in me­dian prices that are out of step with the un­der­ly­ing in­di­vid­ual prop­erty val­ues.”

Seven on the 10 sub­urbs on the list had me­dian house prices above $800,000, with four of the seven in the $1 mil­lio­nand-above price range.

“While sales vol­umes in the lower-priced end of the Perth mar­ket re­main soft, ac­tiv­ity in the $800,000-plus price range has strength­ened, which has cre­ated in­creased de­mand among buy­ers and con­trib­uted to the im­prove­ment in me­dian house price that we’ve seen in sub­urbs like Mt Pleas­ant, Clare­mont, West Leed­erville, Kens­ing­ton, South Perth, Al­fred Cove and Shel­ley,” Mr Collins said.

Reiwa.com anal­y­sis also found all seven sub­urbs with a me­dian house price above $800,000 had faster av­er­age sell­ing times than the over­all Perth mar­ket.

“It took an av­er­age of 69 days to sell a house in Perth dur­ing 2018, whereas in sub­urbs like Kens­ing­ton (41 days), Clare­mont (49 days) and West Leed­erville (49 days), sell­ers are se­cur­ing buy­ers for their prop­er­ties a lot faster,” Mr Collins said.

“In­creased de­mand in Perth’s lux­ury mar­ket is cre­at­ing more com­pe­ti­tion be­tween buy­ers, re­sult­ing in quicker sell­ing times and higher sale prices.

“This data shows that home­own­ers in these as­pi­ra­tional sub­urbs who are think­ing of sell­ing are well placed to se­cure a sale at a favourable price.”

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