Perth’s market recovery is tracking at an average growth rate of 0.9 per cent per month, according to the Real Estate Institute of Western Australia (REIWA).
This is almost double the average growth rate recorded during the 2011-14 growth cycle of 0.5 per cent.
REIWA President Damian Collins said Perth’s last growth cycle lasted 30 months and resulted in 15 per cent price growth.
“We are just 12 months into this current growth cycle and prices in Perth are already up almost 11 per cent, with the bulk of that growth occurring in the first six months of this year,” Mr Collins said.
“For comparison, the total price growth recorded during the first 12 months of the previous upcycle was six per cent.
“One thing that the previous and current Perth growth cycles have in common, is that they both experienced slower growth rates during winter.
“In the last two months, 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 Perth’s wettest ever winters.
“Interestingly, this was a similar trend observed during the previous growth cycle.”
REIWA data showed that during the 2011-14 property cycle, the growth rate dropped to 0.2 per cent in June 2012 before picking back up again towards the end of the year.
“That growth cycle continued for a further 24 months following June 2012, which sets a good precedent for why we shouldn’t read too much into winter slowdowns,” Mr Collins said.
“With listing stock low and competition amongst buyers high, there is still plenty of opportunity for price growth in the Perth market.
Once we move into the spring selling season and the warmer weather descends, we expect that the Perth market recovery will start to accelerate again.”
