The Perth market recovery is tracking at an average growth rate of 0.9per cent per month, which is almost double the average growth rate recordedduring the 2011-14 growth cycle of 0.5 per cent.
REIWA President Damian Collins said Perthslast growth cycle lasted 30 months and resulted in 15 per cent price growth.
We are just 12months into this current growth cycle and prices in Perth are already up almost11 per cent, with the bulk of that growth occurring in the first six months ofthis year.
For comparison, thetotal price growth recorded during the first 12 months of the previous upcycle was six per cent,Mr Collins said.
Winterslowdowns are not unusual in Perth
One thing that theprevious and current Perth growth cycles have in common, is that they bothexperienced slower growth rates during winter.
In the last twomonths, the growth rate in Perth slowed to 0.2 per cent in June and 0.3 per cent in July, which is not unusual given we are in the middle of one of Perthswettest ever winters. Interestingly, this was a similar trend observed duringthe previous growth cycle, Mr Collins said.
reiwa.com analysisshows during the 2011-14 property cycle, the growth rate dropped to 0.2 percent in June 2012 before picking back up again towards the end of the year.
That growth cyclecontinued for a further 24 months following June 2012, which sets a goodprecedent for why we shouldnt read too much into winter slowdowns, Mr Collinssaid.
With listing stocklow and competition amongst buyers high, there is still plenty of opportunityfor price growth in the Perth market. Once we move into the spring sellingseason and the warmer weather descends, we expect that the Perth market recoverywill start to accelerate again.
