Median property prices up in Western Australia
Resource growth in Western Australia has led to commercial expansion, employment opportunities and business activity that continue to exude economic potential, resulting in median property prices to go up.
Recently released figures from the Real Estate Institute of Western Australia (REIWA) have revealed high demand for rental accommodation over the March quarter and a resulting increase in weekly rental fees.
REIWA president David Airey said the urban market saw some of the strongest movement in the three months from January.
“The median rent in Perth lifted by $20 to $400 per week, or five per cent from the end of last year.
“This has been prompted by a tightening of the vacancy rate to 1.9 per cent, well under the accepted equilibrium of three per cent,” he said.
Investors looking to enter the market may see high returns as commercial business continues to expand and more people flock to the area.
However, housing prices are also on the rise, so swift action may lead to more favourable long term results.
Median property prices have risen twice in Perth in the last six months, with the most recent rise of $2000 up to $467,000.
“The gap between the asking price and the selling price in Perth has also closed further, dropping to 6.4 per cent from 7 per cent in December.
“This trend suggests that more sellers are meeting the market and that pricing is being done with greater confidence as the median price levels out,” Mr Airy said.
He also expects to see more sales turnover in the remainder of the year as the market continues to experience economic growth and a positive population trend.
Mr Airey said he did not want to refer to the activity as a boom, but rather a return to normal market conditions.
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