The signs of recovery in the Perth property market continue to grow, including rising sales activity, a significant uplift in prices in the Top End suburbs and the first evidence of price rises in the general market.
Our latest survey of sales activity for The Price Predictor Index confirms that demand is steadily growing in the Perth market.
In this survey we have given a positive ranking (rising, plateau or consistency) to 143 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 to 143 in the past eight surveys.
In the past eight surveys the number of suburbs with growth markets has been 0, 4, 12, 31, 42, 39, 45 and 49. This is the strongest position for Perth in the four years that we have been conducting our quarterly sales surveys.
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 few suburbs have sales activity comparable to those in 2012 and early 2013. But the momentum in the market is undeniable and, taken with other data such as lower vacancies and increased activity in the rental market, we’re confident in our characterisation of Perth as “the city of opportunity” for property buyers.
We are also seeing the first signs of a return to price growth. The latest data from the Real Estate Institute of WA, the ABS and SQM Research has Perth nudging into positive territory on price growth in terms of the city average.
There is notable momentum at the Top End of the market. Of the two dozen Perth suburbs with median prices above $1 million, all but two have median prices higher than a year ago, including 15 which have recorded annual growth of 5% or more.
All in all, Perth's market is firmly in recovery mode and savvy investors should take this opportunity before it peaks.
Get the new edition of Top 5 Perth Hotspots 2019 to find out the best places to buy in this rising market.