- The Perth market is currently recording an average growth cycle rate of 0.9% per month
- Last boom cycle, the monthly rate was 0.5%
- Both cycles witnessed slowdowns during winter
Data gathered by the Real Estate Institute of Western Australia (REIWA) has revealed the Perth market is recording an average growth rate of 0.9% per month – almost double the 0.5% rate recorded during the 2011-14 growth cycle.
Damian Collins, REIWA President, noted the last growth cycle had lasted 30 months and recorded overall price growth of 15% during that time.
“We are just 12 months into this current growth cycle and prices in Perth are already up almost 11 per cent, with the bulk of that growth occurring in the first six months of this year,” he said.
“For comparison, the total price growth recorded during the first 12 months of the previous upcycle was 6%.”
A particular trend both cycles have in common is slower growth rates during winter.
In June, the monthly growth rate for Perth slowed down to +0.2% in June before increasing slightly to +0.3% during July. Mr Collins said this is not unusual given Perth has experienced one of the wettest winters on record.
“Interestingly, this was a similar trend observed during the previous growth cycle,” Mr Collins added.
In June 2012, the monthly growth rate dropped to 0.2% before picking up towards the end of the year.
“That growth cycle continued for a further 24 months following June 2012, which sets a good precedent for why we shouldn’t read too much into winter slowdowns.”
Mr Collins said that given listing stock remained at low levels and buyer competition is high, there is still ample opportunity for price growth in the Perth market.
“Once we move into the spring selling season and the warmer weather descends, we expect that the Perth market recovery will start to accelerate again.”
Perth Metropolitan Area
[Select part of the chart to zoom in on various years, and ‘reset zoom’ button to return]
SQM Research’s weekly asking property prices for Perth demonstrate the slowing down of growth after a step increase during autumn for house prices.
Speaking on an online webinar today, The Agency’s GM of WA Stuart Cox agreed that things looked positive.
“You have to remember that in 2009, the Perth median price was almost on par with Sydney; but we are still below that level, even though there’s been an 11% increase in prices over the past year,” he said.
“We’ve been on a roller coaster. Agents have spring in their step, and listing stock is down 6.5% over the last quarter. Properties are flying out the door, despite the wettest winter in 25 years. Days on market is down to 17, and last year it was 44. In six suburbs in Perth, days on market is less than 10. We’re looking forward to the next two years. We’re excited!”
Stuart Cox, WA GM of The Agency