June reiwa.com data shows the strongest month for sales in Perth since 2015, with transactions increasing 55.1 per cent compared to May and 45 per cent higher than June 2019.
REIWA President Damian Collins said its clear the recent Federal and State Government building bonus grants have boosted transactions last month.
Perth sales market
reiwa.com data shows there were 3,990 sales transactions in June, with 2,519 of these dwellings (up 15 per cent) and 1,471 land sales (up 289 per cent),MrCollins said.
The large spike that we have seen in land transactions can beattributedto people fearing that they may miss out on these grants. There is a real possibility that we will run out of titled and completed blocks in the coming months.
The top suburbs to see an increase in transactions wereWilletton,Thornlie,Girrawheen, Dudley Park and High Wycombe.
Median sale price
reiwa.com data revealed the median house price remained unchanged for June, which is sitting at $475,000, however the median land sale price increased five per cent compared to this time last year and is now sitting at $250,000.
With listings for sale down nine per cent to only 10,310 and sales activity increasing, it is fast becoming a sellers market. While monthly changes in prices can be volatile, rising sales and dropping stock levels are usually a precursor to rising prices,MrCollins said.
During the initial COVID-19 period there was some downside price risk to Perth property prices, however it now appears that Perth prices will generally hold firm and could even possibly rise. This is of course dependent on the economy opening up and remaining open.
Perth rental market
Listing stock in Perths rental market continued to plummet in June, declining a further 15 per cent to 3,963.
This reduction in listings means we can expect the vacancy rate to drop further from the current 2.2 per cent. In saying that, there are many agents on the ground who are reporting the vacancy rate for their agency sitting as low as one per cent, Mr Collins said.
According to reiwa.com data, the suburbs that have seen the largest increase in leasing activity growth include Cloverdale, Rockingham, Mount Lawley,Beckenhamand Subiaco.
Median rent price
Perths overall median rent price remained at $350 per week in June 2020.
While the ban on increasing rents is in place for established tenancies during the COVID-19 emergency period, agents are reporting some evidence of rising rents on newly leased property. Once we emerge from the emergency period, we may see median rental prices rise, Mr Collins said.