Perth Property Report December 2013
Over the past 12 months Perth has recorded an 8.9% increase in home values. This is above the capital city average of 8.0% and is second behind Sydney, 12.5%, for the highest growth. Hobart was the only capital to have had a decrease in home value change with -1.4%. In the three months to November Perth home values rose by 2.5% which was lower than the 3.0% average. However this is inflated by Sydney’s impressive 5.8% rise and is the only city higher than the average. Compared to it’s previous peak Perth experienced a 2.3% increase in home values, the only other capital city to record an increase was again Sydney with a whopping 10.1%.
Units continue to provide a much more affordable entry point into the market as they are on average $85,000 cheaper than houses in Perth. Median prices for houses and units are $515,000 and $430,000 respectively.
With the exception of Darwin, over the past decade Perth has been the standout for capital gains. In that time the average annual change in Perth property prices has been 7.9%, well above the capital city average of 4.2%. Over the past five years, however, Perth’s average annual change has been 2.5%, lower than the capital city average of 4.1%.
Rent growth in Perth seems to be slowing with the last quarter recording a change of -0.40% for houses and -1.5% for units. The 12 month change has been 2.2% increase for houses and 3.1% for units with the median rent being $507 and $447 respectively.
In the other parts of Western Australia the Kimberley and Pilbara along with the Upper Great Southern region have recorded the highest change in property value over the past 12 months with 10.3%. The South Eastern and Lower Greater South recorded negative change with growth rates of 1.1% and 3.2% respectively. However it was the midlands region that fared the worst though with a -6.6% change in house value over the past year.
Perth had 8,786 house sales over the three months until September 2013 and 1,876 unit sales. House sales are estimated to currently be 10.8% higher than this time last year. Sales estimates for units indicate that sales activity over the most recent three months is -2.3% lower than a year ago.
Data Source: RP Data