Recent CoreLogic data reveals Perth is leading Australia’s house versus unit sales competition.
In the year to January, the western city’s share of house sales made up 82.1% of its total property purchases, as compared to Australia’s overall house sales average of 74.2% for the same period.
Adelaide’s and Brisbane’s houses were next on the list, enjoying a jump of 4.5% and 2.8% respectively above the national annual average.
CoreLogic attributes this “general uplift in the share of sales” to several factors including the introduction of HomeBuilder, which may have skewed demand toward houses; low lending to investors who traditionally prefer units; and the “bottoming out” of national housing values which in turn saw houses become preferable to units.
The Real Estate Institute of Western Australia (REIWA)’s president, Damian Collins, says he’s unsurprised by the national industry data expert’s numbers, explaining the city overall is performing particularly strongly, even with tough COVID-19 border controls in Western Australia.
He says Perth’s very healthy housing-based market, strong demand and limited supply, and more affordable prices overall stands in sharp perspective to apartment-based cities “over east”.
“Perth is really still a house market,” Damian explains.
“You can go to Sydney and 60% of all new approvals are apartments and in Melbourne, it’s 30-35%.
“But we’re still a very small apartment market.”
Damian says the strong demand for houses is coming from owner-occupiers, who’ve been “sitting on the sidelines” waiting for the right time to buy, after a five-year downturn in Perth.
“Now everyone’s realising it’s a good time to get in,” he says.
“The bottom’s come and gone and a lot of owner-occupiers are back on the market.”
Daniel says even COVID-19 border controls haven’t deterred a “reasonable number” of interstate and overseas’ Western Australians returning to their home state.
“There still seems to be a strong demand (from expats),” he says.
“We’re seeing them buying back into the market because they see how cheap it is.”
He goes on to add the house sales increase has been a nice surprise for the city.
“We’ve certainly seen volumes of prices go up over the last 12 months,” he explains.
“It’s the best market since 2014 and potentially the best market since 2005-2006.
“There’s been high home buyer activity and investors are still low.
“There’s certainly no way that Perth prices are dropping.”