Perth properties experiencing two quarters of consecutive growth
A report from the Real Estate Institute of Western Australia (REIWA) in May* showed that the median house price in Perth rose for a second consecutive quarter to $467,000, which is a sign that the worm is turning for the local property market.
“All up, the March quarter results are encouraging and give me reason to think that the worst is now behind us,” says David Airey, President of the REIWA. “It was notable that during the March quarter there was a market increase in the number of sales above the metropolitan median price as trade-up buyers got moving.”
Rae O’Neill, Raine & Horne’s Business Support and Development Manager for WA, reveals many local agents are echoing the same sentiment in the Western Australian capital. “Industry consensus is that Perth is now the place for investing again.”
Ms O’Neill says Perth’s outer suburbs such as Midland, Canning Vale, Thornlie and Cannington have experienced renewed buyer interest since the beginning of the year. “These more affordable suburbs are within 20 minutes of Perth’s CBD and are definitely on the radar of buyers.”
Vince Pileggi, Principal Raine & Horne Midland agrees. “In Midland, we’ve seen an increase in activity, with properties listed under $350,000 selling quickly.”
Moreover, Mr Pileggi says there is a series of government and private sector projects in different phases of construction, such as the new $360 million, 307-bed St John of God public hospital. “These projects are attracting workers from across the state, which is great news for real estate values.”
In addition to relatively robust home values, Midland’s rental market is also producing healthy results. “At the moment, there is such high demand for rental properties that we have about 20 people sitting on a waiting list and not enough properties to lease,” says Mr Pileggi.
Meanwhile, the latest Herron Todd White/Westpac Report** states that Perth’s inner eastern suburbs of Rivervale and Kewdale also offer a wide choice of homes in the under-$500,000 price bracket. “Both suburbs are within five kilometres of the CBD and offer easy access to the airport,” confirms the report. “The continued expansion of Burswood (now Crown) Casino and the new football stadium is likely to underpin demand in the area. “In this price range it may also be possible to find renovated cottages in Victoria Park and East Victoria Park, which both offer a central location with good local facilities and healthy long term growth prospects.”