Perth house price growth at seven year high

From: Glenn Mott

Perth house price growth at seven year high in 2002

The first official statistics for 2002 show that the real estate market in Western Australia is continuing the strong growth achieved last year, according to the latest monthly market report by the Real Estate Institute of WA.

There were 4,776 sales of established homes in WA, in January 2002, which is 13.6% up on sales in January last year.

In January 2002 the Perth median house price reached $173,900, which is 9.9% up on the median house in January 2001.

The last time Perth recorded a similar annual growth rate in median property values was in 1994, said REIWA President Graham Joyce.

"Investors have taken over from first home buyers as the most influential factor in the market in 2002.

"We are noticing a big increase in demand for investment properties by people with ?Do-It-Yourself ' superannuation funds. This follows uncertainty in the other major investment sectors.

"There was a very large increase in housing sales in regional WA, in January 2002. This is encouraging because the real estate market in regional WA, with the exception of Mandurah, has lagged behind Perth in terms of sales and house price growth.

"WA is on track to be the leading real estate market in Australia in 2002, after trailing behind Melbourne and Sydney in recent years. The markets in the two largest eastern states cities are cooling, and we are noticing greater investor interest in WA from interstate.

"The rental market is the only weak sector in Perth at the moment. The Perth rental vacancy rate is steady at 4.6%, which is high but not alarming. The main reason for the higher vacancy rate is a larger than normal movement by people out of rental accommodation to take up the financial assistance for first homebuyers.

"There is no evidence of excessive over-supply of housing in WA", said Graham Joyce.

Story added by: Lino Iacomella on Monday, February 25, 2002
The above article can be found in REIWA News
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