The Perth property market staged a strong comeback in the March quarter according to new data released today by the Real Estate Institute of Western Australia (REIWA.com.au).

According to REIWA.com.au, Perth’s median house price has increased $10,000 since December last year, raising the current median value to $430,000.

Perth Real Estate sales volumes have returned to a 15 year average following the doldrums of 2008.

REIWA President Rob Druitt said that WA’s property market experienced its strongest turnover since September 2007 with the number of sales increasing by more than 40 per cent since December.

The Federal Government’s First Home Buyer Boost has definitely been a major force in generating renewed activity, there are also indications that trade-up buyers are starting to return to the perth property market, said Mr Druitt.

Unit Prices also showed growth, up almost 2 per cent to achieve a $348,000 median value..

Blocks of residential land also saw growth in the March quarter, increasing by 4.5 per cent, or $10,000, to a $230,000 median value – largely driven by the first home buyer market.

Mr Druitt said the turnaround in house sales during the quarter was astounding, with evidence suggesting that the number of sales for the month of March were 85 per cent above December last year.

This increase in sales was experienced across all market sectors, particularly the coastal region from Scarborough to Butler and in the South East corridor in the Canning and Gosnells local government areas.

Much of the increase in the overall median was driven by price growth in the middle ring and coastal markets such as Wanneroo North West (5 per cent), Wanneroo South (7.6 per cent), Stirling West (4 per cent), Bayswater-Bassendean (1.9 per cent), Gosnells (3.6 per cent), and Cockburn (3.3 per cent).”

In contrast, some inner markets saw a fall in prices, including the Western Suburbs (-12.5 per cent) and Vincent (-3.1 per cent), while Armadale-Serpentine on Perth’s outer fringe also fell by 2.1 per cent,”Mr Druitt said.

The number of homes for sale in Perth has been progressively falling from the over-supply of March 2008. The figure dropped from 17,500 dwellings in March last year to 14,300 at the end of April.

This slide in the number of listings suggests that the excess stock built by speculators during the boom is likely to evaporate by the middle of this year, and probably triggering fresh construction, Mr Druitt said.

Perth’s rental vacancy rate has eased to 2.9 percent, a figure that historically is normal for the city. This has helped reduce pressure on rents which have been stable for the last six months, at a median price of $360 per week sfor both units and houses.

Mr Druitt indicated that regional WA also had a similar positive result, where house prices had increased by $10,000, or 2.9 per cent, in the quarter.

A typical house in regional WA will now cost you $350,000, while units in the regions have jumped by almost 7 per cent, or $20,000, to a new median of $310,000.

However, unlike the city, land prices have remained quite stable, lifting by around $2,000 to a median block price of $155,000, Mr Druitt said.

According to REIWA data, there were approximately 15,000 properties on the market during the March quarter, reduced from around 16,000 properties in December.

Taking 76 days on average to sell a property in the current property market in perth, property is still currently taking around eleven weeks to sell. This is 5 days more than the same time last year

However, it is a patchy market and some areas such as Armadale, Gosnells and Wanneroo South have seen selling days come down quite a bit,”Mr Druitt said.

Mr Druitt said it was very hard to predict how the June quarter might fare, as the winter months were traditionally very quiet for the sector.

The Rudd Government’s extension of the first homebuyer boost through to 30 September will have an impact, as will rates of unemployment and general overall consumer sentiment.

That said, it is clear that the robustness of the current market is providing many keen buyers plenty of opportunities to keep them motivated, Mr Druitt said.

 

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