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Perth April Property Report

Perth April Property Report

The past twelve months to March have been good to Australian property values with every state capital increasing in price. The capital city average has risen to 10.6% on the back of Sydney (15.6%) and Melbourne (11.6%) strong property market. Although Perth (4.7%) was lower, Brisbane (4.8%) was the only other city ahead of it. However, Perth recorded a -0.6% drop in values for the quarter while Melbourne (5.4%), Hobart (4.7%) and Sydney (4.4%) were the only cities to have a value growth of more than 4% for the past three months.

Despite a slow quarter Perth (2.3%) is one of only four capital cities whose property values are currently greater than the previous peak. Combined capital city home values are now 7.2% greater than their previous high which was in October 2010. This is driven by the significant gains in the Sydney market (15.8% higher), Melbourne (4.7%) and Canberra (1.2%) are the only other cities which are better.

Perth’s current median property values are $533,750 for houses and $430,000 for units, the mean across the country is $535,000 and $451,500 respectively. The median weekly rent for houses ($506) trumps the national average of $483 whereas units ($456) are only $4 greater. The rental yields for both house (4.2%) and units (4.7%) are higher than the combined capital city average of 3.8% and 4.6%.

Across the twelve months to February 2014, the most expensive sector of the housing market has been the best performer, while the most affordable markets have been the weakest. Over the year, the most affordable suburbs have recorded value increases of 9.1%, compared to 10.8% across the middle market and 11.2% across the most expensive suburbs.

Nationally 9.7% of all homes which re-sold over the three months to December 2013 incurred a gross loss compared with a peak of 13.1% over the quarter ending January 2013. At the capital city level, the proportion of loss making re-sales has been lower than the national average since early 2009. This quarter 6.5% of all capital city re-sales recorded a gross loss. Perth had one of the lowest proportions of resale losses (4.3%) but regional Western Australia had one of the most significant areas recording 19.3%. While most loss resales occurred after 3-5 years across the other cities, 5-7 years was the most detrimental for Perth.

The top suburbs in Perth were Peppermint Grove (0%) and Gosnells (1.2%) as they both recorded under 2% loss making resales. However, the same cannot be said about Cottesloe (13.8%), Perth (12.3%) and Claremont (9.7%).

perth resale

The number of unique properties listed for sale in Perth has increased from the same time last year but the number of total listings has decreased. This is reflective of the rapid rate of sale that has happened over the past twelve months. Basically properties are being sold faster than they are being listed on the market. This is a result of buyer demand increasing and quality listings not staying in the market for long.

 

Chart-21[1]

 

Finance Detective understand the Perth property market and can get you the right product. To speak with one of experts please call (08) 9289 7777 or email info@nullrdfinance.com.au.

 

Source: RP data