WA, Australia (PRWEB) October 16, 2013
According to the property portal Real Estate Institute of Western Australia (REIWA), first time home buyer activity over the three months prior to August has made a strong impact in Perth's housing market. Culling from initial data, REIWA reports that median house prices have dipped primarily due to increased purchases from first time home buyers.
"The REIWA.com.au data reported to us from our members’ sales show the median house sale price dropping 1.4 percent to $515,000 from the three months to May figure. This appears to be due to the large turnover of more affordable homes skewing the median downwards," explains REIWA President David Airey.
In the month of August alone, a total of 2,076 houses were sold, which is 4% more than the total homes sold in the previous month, although this figure is 14% less than the figures from three months before.
Among the best performing markets were those suburbs located within the 10-kilometre radius of the central business district which have reported a 6% increase in reported sales. Among the best performing areas are the Bayswater-Bassendean area which had a 21% increase in sales, Northwest Wanneroo which registered a 31% increase, Southern Wanneroo which had a 36% jump in sales, as well as Kwinana and Rockingham. The City of Joondalup, on the other hand, was the poorest performer in the area, recording a 20% dip in sales.
Another notable point in REIWA's August report is the limited number of land that is out on the market for sale. The property portal notes that while there has been a significant increase in the number of home listings, the number of available blocks of land for sale has dipped by 18% over the last three months.
Airey weighs in on this issue and its possible impact on the market: "Although we are still under our long term equilibrium of around 12,000 listings, it’s encouraging that the number of dwellings for sale is heading back to normal; however, the demand for land may present developers with some challenges over the next six months."
Finally, the August report shows a marked increase in the rental rates of flats, units and apartments. While overall rent median in Perth remained pegged at $475 per week, the aforementioned rental property types registered an increase in rental prices by $5, bringing the median price to $460 per week.
"For the three months to July, the vacancy rate had grown to 3.6%, the highest since 2010, with REIWA.com.au now showing some 4,027 rental properties on the market at the end of August. This is up by 9% over the last three months and up by a significant 75% on the same time last year," Airey adds.
However, REIWA expects median rents to decrease at the onset of the final quarter as many tenants are seen to break their lease agreements following the availability of more affordable options.
"The temptation to break-lease and find something cheaper will be tempting to many tenants; however, I urge people contemplating this to first look at the costs involved in breaking a lease before they make that decision," Airey warns.