The median price of Perth homes has risen by 1.9% to $535,000 in the three months prior to December 2016, according to new figures from the Real Estate Institute of Western Australia (REIWA).
This trend – which comes from the latest REIWA data – is caused by increased buyer confidence which has in turn placed additional pressure on property prices.
“This is the second month in a row that we’ve seen an increase in the median house price, which is a welcome trend and suggests that the trade-up sector of the market is recovering,” said president Hayden Groves.
Since the second half of last year, prices across the Perth metro area have started to increase month-by-month, he added.
This newer upward trend showed that buyer confidence was recovering within Perth, he told
The West Australian.
“Buyers are punting that we’re either at the bottom of the market, and if we’re not at the bottom then we are very close to it,” he said.
“Confidence is starting to emerge. That’s why we’re seeing this upward pressure on price. I think it’s up from here – I don’t think it will be a spectacular up, but it will be a more optimistic and positive year in 2017.”
While lower price brackets have dominated the Perth market over the past three years, this was due to change, Groves said.
“I imagine that the composition of the market will show that there will be more properties sold in the higher price brackets in 2017,” he told the paper.
“I don’t think it will happen immediately, but certainly we will see that happen in a gradual way.”
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