According to the latest REIWA report, sales over $1 million presently cover for 11% of all house sales in the Perth Metro region, part of a steady growth in the share of sales for that price bracket that began in 2012.
“It’s interesting that the proportion of sales occurring above $1 million has increased during a time when the Perth property market and the WA economy have experienced a difficult few years,” said REIWA President Hayden Groves.
From June 2011 to the same month in 2012, house sales above $1 million in the region accounted for just 7% of total sales. After six years, the number has increased to 11% – the highest ever recorded.
The suburbs that saw the most activity above $1 million dollars over the last year (to June 2018) were Nedlands (95 sales), Cottesloe (93 sales), Floreat (89 sales), Claremont (77 sales) and Mosman Park (75 sales).
Grove said that this increase boils down to the buyers being able to appreciate the market’s potential. “Buyers clearly recognise there is excellent opportunity in these aspirational suburbs to purchase high quality family homes at prices we are not likely to see again as the market recovers.”
Additionally, the data suggests that the number of Perth suburbs with a median house price equal to or above $1 million has increased. In fact, Groves shared that there are 37 suburbs across the metro area with a median house price at or exceeding $1 million. “[This] is a notable increase on the 31 suburbs recorded at the same time last year,” he added.
“Demand in these suburbs has clearly strengthened. Data shows 25 of those 37 suburbs are selling faster than the overall Perth Metro region figure, which indicates buyers need to act quickly in these areas to ensure they don’t miss out,” Groves further explained.
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