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February Perth Property Report

February Perth Property Report

To January 2014 Perth recorded an annual increase of 6.9% for dwelling values, this was lower than the capital city average of 9.8%. Only Sydney (13.4%) and Melbourne (11.9%) were higher while Hobart (-0.2%) was the only city to record negative growth. Over the last three months home values increased across all capital cities by an average of 2.7%. Perth recorded a change of 3.1% but interestingly Hobart (5.8%) had the greatest increase for the quarter despite a decline over the past year.

Perth is one of only three cities where the home values are higher than their previous peak. Perth is currently 2.5%  greater than their top but Sydney’s values has a massive 11.8% increase from their best.

There is now a record differential nationally between the prices of units and houses of $95,000, reaffirming units position as a more affordable entry point into the market. Perth’s median house and unit prices are currently $540,000 and $439,000 respectively, a difference of $101,000.  The values for all capital cities is below:

capital prices

Across the 12 months to January 2014, the most expensive sector of the housing market has been the best performer and the most affordable markets have been the weakest. Over the year, the most affordable suburbs have recorded value increases of 7.7% compared to 9.8% across the middle market and 10.3% across the most expensive suburbs.

Rental growth has slowed in the West with houses recording a -0.4% change for the quarter and only a 0.1% increase for the year. Units fared slightly better with a 1.0% increase over the past three months and 2.6% annually. The median weekly rent for the two property types sits at $505 and $452 while the yields are 4.2% and 4.8% respectively.

As can be seen the city was the standout performer in the state for the quarter. Despite a slower period the Pilbara, Kimberley and Upper Great Southern region have all had an impressive 12 months growing by 9.8% each.

wa percent

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Nationally estimated houses sales over the three months to November 2013 were 16.4% higher than they were over the same period in 2012 while estimated unit sales had increased by 12.3%. Perth house sales are currently estimated to be 8.0% higher than over the same three month period a year ago. Sales estimates for units indicate that sales activity over the most recent three months is -2.1% lower than a year ago.

Finance Detective is a premium broker service based in Perth, Western Australia. For assistance with any finance please contact (08) 9289 7777.

Data Source: RP Data