January 18, 2016
The above statistics are as of the end of September 2015, and although capital cities such as Melbourne and Sydney were seeing growth figures around 18% to 20% in the same time period, Perth most certainly was not. In fact, if anything, prices softened as we can see, however over the medium term (3-5 years) we can still see modest capital growth has still occurred for property owners in our beautiful city.
2015 felt to us like a year where people generally stopped buying properties in Perth, so we took the time to check the statistics and see if our feeling was right. Sure enough RPData shows a drop in overall sales for the suburbs we looked at. For example, Kingsley, where we are based, is approximately 83% owner-occupied. If we look at the number of houses sold in Kingsley each year, going back to 2007 (where RPData's information begins), 2015 is the lowest year at 141 sales, experiencing a drop of about 22% from 181 sales in 2013. Looking at the surrounding suburbs in our area, some have dropped off by as much as 30 and 40%.
Does this explain why prices have dropped, and does it mean now is the time to buy?
Anecdotally, we have experienced one of the busiest December and January periods we can remember, and this is verified by our industry peers. From our conversations, we all seem to be feeling a significant uplift in the rate of people buying properties. Perhaps we are about to start to see the stats for Perth move upward again.
If you would like an RPData Suburb Statistics Report for any particular suburb, just call us on 9309 4780 or email email@example.com. We'll look it up and email it back to you.