This article is from the Australian Property Journal archive
SEVEN Perth suburbs have defied market conditions, recording more house sales than they did during the boom period in the year to January 2014.
Overall, the market has struggled amid the mining and resources downturn, which has seen Western Australia recently deliver negative GSP growth and high unemployment rates.
According to REIWA, of the improvers, Alkimos, Golden Bay and evergreen Trigg topped the list, with increases of 122.5% to 89 sales, 49.1% to 79, and 20.5% to 47 sales respectively over the 12 months to January this year.
Salter Point and Leederville also recorded double-digit growth, at 16.1% and 12.5% to 36 sales each, and Jindalee (up 5.9%, also to 36) and Ardross (up 3.7% to 84) also saw increases.
“For some of the relatively newer suburbs on this list, population growth has played a role in their sales volumes improving. However, interestingly, the majority of the suburbs on the list are well-established, affluent suburbs like Trigg, Salter Point, Leederville and Ardross,” REIWA president Hayden Groves said.
“These suburbs haven’t seen substantial increases in population growth, yet have defied market conditions to maintain sales levels that are on par or notably higher than the levels they recorded during the boom, which is impressive,” he added.
Trigg’s median house price has grown in the four-year period by 6.5%, from $1.08 million to $1.15 million, while prices were steady in Salter Point and Leederville.
“While sales volumes in the seven suburbs are fairly modest, it’s a testament to these smaller markets that they have weathered the challenging conditions of the last few years so well.”
Recent Riskwise research labelled Perth’s residential market overall as high-risk for investors, with low economic growth, a soft jobs market and sluggish population growth forecast.
Negative growth of 7% for houses, and of negative 14% for units had been registered over the past three years, it said.
Australian Property Journal
