The housing market in Perth is slowly showing signs of improvements after it experienced its “worst cycle ever” following the end of the mining boom in Western Australia. Is it time for investors to explore opportunities in the city?
Over the past year, settled transactions in Perth have risen by 1.4 per cent, indicating that the market’s turnaround is beginning.
While property values continue on a downward trend, declining by 0.3 of a percentage point in May and by 0.4 of a percentage point in June, this minimal movements could actually be signs of stability.
In the past three months, the median house price in Perth only went down from $522,000 to $520,500. When compared with house prices in February, the median house price in the city actually went up by 1.1 per cent.
Meanwhile, median unit prices are also holding up well. The median unit price increased by 0.8 of a percentage point to $419,000 last month. Over the past three months, the average increase is up by 2.9 per cent.
Indeed, experts believe that Perth is onto a slow and steady improvement — no rapid price growths but no substantial declines either.
Real Estate Institute of Western Australia’s (REIWA) Hayden Groves said: “We are seeing similar trends in the house and unit medians, which is good news as it suggests one sector of the market is not recovering at the expense of the other.”
“REIWA expects house and unit prices to remain fairly stable for the remainder of the year,” he highlighted.
If the economy of Western Australia continues to recover and consumer sentiment continues to build, the Perth property market can expect genuine improvements by 2019.