Perth property

Real estate market heats up in Perth with forecast 10 per cent jump in median house price

PHOTO: Ray White CEO Mark Whiteman says both buyers and sellers can take advantage of the market.(ABC News: Amy Johnston)

Perth’s property market is on the rise as reduced travel increases buyer activity, with expectations the median house price could grow by as much as 10 per cent during 2021.

According to data from the Real Estate Institute of Western Australia (REIWA), December 2020 saw a jump of 42.5 per cent in house sales compared to December 2019.

REIWA president Damian Collins said reduced travel during December had allowed people to benefit from the favourable real estate market.

“Traditionally December experiences a reduction in the number of house sales due to buyers going away for the festive period,” he said.

“Yet this year we have seen a significant increase in buyer activity, which suggests that people are taking advantage of the market conditions whilst they are unable to travel.”

Perth’s average house price remained stable in December, sitting at $480,000, while REIWA data showed 45 per cent of suburbs saw an increase in property value during the month.

An aerial shot of the inner-city Perth suburb of Mount Hawthorn
REIWA buyer activity rose significantly in December compared to the same time in 2019.(ABC News: Gian De Poloni)

Kelmscott saw the largest increase in its median sales price during December, jumping 6.2 per cent to $375,000.

Yokine followed with a 4.8 per cent increase to a median price of $650,000 house price average, while the median price in Wellard rose 4 per cent to $399,500.

“With listings for sale decreasing 16.5 per cent in December, it is only a matter of time before median prices start to increase,” Mr Collins said.

‘If they don’t buy, it may well be gone’

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