There is growing evidence of recovery in the Perth property market, including rising sales activity and a significant uplift in prices in the Top End suburbs.
Our Winter survey of sales activity for The Price Predictor Index has confirmed the strong showing in the two previous quarterly surveys.
In this survey we have given a positive ranking (rising, plateau or consistency) to 132 suburbs in the Perth metro area.
The number of suburbs with a positive ranking has risen from 17 to 46 to 61 to 88 to 109 to 115 to 132 in the past seven surveys, while suburbs classified as danger markets have disappeared. In the past seven surveys the number of suburbs with growth markets has been 0, 4, 12, 31, 42, 39 and 45.
There are now large numbers of suburbs recording consistent sales activity, in addition to those with rising markets.
It should be remembered that Perth is rising from a low base and that none of its suburbs has sales activity comparable to those in 2012 and early 2013.
But the momentum in the market is undeniable and it seems only a matter of time before some locations return to the strength of the pre-downturn days.
We are also seeing the first signs of a return to price growth, although some research sources still have the Perth market overall in slightly negative territory.
One factor evident in our latest analysis is that there is price growth in the upper end of the Perth market. When city markets are at the early phase of a growth cycle, the upmarket suburbs are often the first to show growth (and it ripples out later to the middle market and then to the cheaper areas).
The latest price data shows that several Perth suburbs with median house prices above $1 million have recorded strong growth in their median prices.
This trend is widespread across the Perth prestige market. Suburbs with strongly rising prices include Nedlands, Applecross, Cottesloe, Dalkeith and Bicton.
Confidence that the upturn is sustainable comes from revival in the mining sector and the large numbers of jobs being created. As the WA economy improves, businesses thrive and business people become more confident in their real estate purchases.
This suggests that Perth generally can look forward to a return to price growth in the near future.
Putting all these factors together - more growth markets, fewer Danger markets, more consistent ones and early signs of prices rising - provides evidence of a return to strength in the Perth market.
Get the new edition of Top 5 Perth Hotspots 2018 to find out the best places to buy in this rising market.