The recovery in the Perth property market is gaining speed with new figures showing a sharp lift in the median price of a city home.
The Bendigo Bank-Real Estate Institute’s quarterly measure of house prices showed the median price in Perth lifted through the December quarter by 3.3 per cent to $495,000.
Over the full year, the median house price lifted by 5.3 per cent.
It was not just Perth where home prices increased.
Median house prices in Melbourne jumped by 7.8 per cent (to $555,000) while they increased by 7.4 per cent in Hobart to $365,000.
The nation’s most expensive capital city continues to be Sydney where the median grew by two per cent to $656,000.
Prices for units and apartments lifted by two per cent to $410,000 through the quarter.
The tightness of the rental market continues to be a feature of Perth with a vacancy rate of just 1.9 per cent. Only Sydney has a similarly low vacancy rate.
Bendigo and Adelaide Bank executive retail Dennis Bicecrt said the improvement in housing affordability, driven by lower interest rates, was securing the property market.
“We’re seeing some interesting trends around Australia that can assist in identifying properties that represent both value and the potential for growth,” he said.
“This stage in the property cycle is presenting some good opportunities in several Australian cities, particularly for those seeking to upgrade the family home. In other areas, buying may still be almost as affordable as renting.”
The biggest increase in median house prices across WA was recorded in Geraldton, up by 8.3 per cent.
Across all dwellings, the median price for inner Perth experienced the biggest increase of 8.8 per cent.
Prices did ease in Mandurah, by 3.8 per cent, and Kalgoorlie-Boulder, by 0.6 per cent.
Shane Wright, Economics Editor, The West Australian – 13 March, 2013