The Perth market is the strongest it’s been since it lapsed into downturn five years ago.
Vacancies are down, rents are rising again, sales activity is up and 40% of suburbs have median prices higher than a year ago. Recovery is under way, even if it’s not showing up in the generalised price data in media.
Our Autumn survey of sales activity has given a positive rating (rising, plateau or consistency) to 168 Perth suburbs. The number of suburbs with a positive rating has risen from 17 to 46 to 61 to 88 to 109 to 115 to 132 to 143 to 152 to 168 in the quarterly surveys of the past two and half years.
In the past ten reports the number of suburbs with growing buyer demand has been 0, 4, 12, 31, 42, 39, 45, 49, 51 and now 53. As we commented previously: “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 …”
Our Autumn survey records the ninth consecutive quarterly rise in suburbs with rising sales activity. This is starting to deliver price growth in some markets: our suburb-by-suburb analysis of 216 Perth markets shows that 85 have median prices higher than a year ago (58 have risen by less than 5% and 27 have risen 5% or more) and 131 suburbs have medians still lower than a year ago (72 are down by less than 5% and 59 have dropped 5% or more).
That means 40% of Perth suburbs have rising prices and 60% still have prices down.
Get the new edition of Top 5 Perth Hotspots 2019 to find out the best places to buy in this rising market.
Perth was Hotspot of the Week on April 23rd 2019