BUTLER was one of the Top 10 performing suburbs for median sale price growth in the metropolitan area in December, according to REIWA.
REIWA president Damian Collins said in the latter end of 2019 the luxury market continued to perform well across both sales and rentals and now suburbs in the lower end of the market were also picking up.
Mr Collins said December data showed five of the 10 top performing suburbs according to median sale price growth had a median below Greater Perth’s median of $479,000.
“Applecross saw the largest growth of 3.2 per cent, which was closely followed by Rockingham (2.1 per cent), North Perth (1.5 per cent), Butler (1.4 per cent) and High Wycombe (1.3 per cent),’’ he said.
“It is pleasing to see that the higher end of the market still continues to do well and the lower end begins to see improvements.
“Trade-up buyers are most active and currently account for 53 per cent** of demand in line with earlier improvements seen at the higher end.
“That said, improvements at the lower end could attract first home buyers and investor back into the market which could change this.’’
There were fewer properties for sale in December than November, with reiwa.com data showing listings for sale declined 12 per cent during the month.
“With listings declining and the average days on market lowering to 67 for dwellings, current stock is being absorbed quickly, therefore buyers are advised to keep this in mind when looking for their next property.’’
Perth rental market listing stock in Perth’s rental market continued to plummet in December, declining a further seven per cent to 5616.
“In addition to the decline we’ve seen during the month, listings are now a significant 18 per cent lower than they were a year ago.
“This reduction in listings, combined with stable rent prices and healthy leasing volumes, has pushed the Perth vacancy rate to 2.3 per cent, the lowest level Perth has experienced since February 2019.’’
Perth’s overall median rent price remained at $350 a week in December 2019.
“Traditionally the first few months of the year are a busy time for leasing activity.
“If the rental market remains on its current upward trajectory, we should see rent prices increase throughout the year.’’
Mr Collins said CoreLogic’s latest home value index supported the view the median house price stabilised in December, holding onto gains seen in November.
CoreLogic head of research Tim Lawless said in Perth the high end of the market had been more resilient to falling values.
“While each of the broad valuation cohorts has recorded a sustained drop in values, the reduction has been less severe across Perth’s top quartile where values are down 16.5 per cent since peaking compared with a 27.8 per cent decline across the lower quartile,’’ he said.
CoreLogic data showed on an annual basis, Australian dwelling values tracked 2.3 per cent higher over the 2019 calendar year with five of the eight capital cities and five of the seven ‘rest-of-state’ regions, seeing the year out in positive growth territory.
Among the capital cities, Sydney and Melbourne recorded the highest annual capital gain, with both cities posting a 5.3 per cent rise in dwelling values over the year.
Regional Tasmania, where values were 6.1 per cent higher over the year, led the regional markets.
Values were down in Darwin by 9.7 per cent, 6.8 per cent lower in Perth and 0.2 per cent lower in Adelaide over the year, while values also fell across regional Western Australia (-11.8 per cent) and regional NSW (-1.1 per cent).
**ABS 5601 October 2019 data, REIWA Research calculations.