Property prices in Perth remained stable in April despite the dramatic decline in sales volume, according to the latest figures from CoreLogic and the Real Estate Institute of Western Australia (REIWA).
Perth's property values continued to post growth in April, growing by 0.2%. According to CoreLogic, it was Perth's sixth consecutive monthly growth. This gain brought the city's median value to $477,000.
"It is positive to know that despite the current economic conditions, sellers are not being forced to sell and lower their sales price to do so," said Damian Collins, REIWA president.
This is despite the 40% decline in sales activity in the month, with weekly sales transaction sitting at a low of less than 300 per week.
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It also took sellers shorter time to sell their properties this month, with the median selling days falling to 65, down from 77 last year.
The stability in prices could also be attributed to the decline in property listings. REIWA data show that listings declined by 5% over the month.
Collins said the current initiatives by the federal and state governments are helping cushion the impacts of the outbreak, ensuring that homeowners are not forced to sell.
"The full impacts of COVID-19 on the property market are not known at this stage, but the decline in listings demonstrates that there is not an influx of people who are trying to sell their homes due to being in financial distress," he said.
Collins said the state government of Western Australia should consider cutting stamp duty and explore options to give buyers incentives to help support the market amid the ongoing pandemic.
"We ask the government to consider short term changes to help incentivise buyers, as well as long term tax reform removing stamp duty and replacing it with a broader-based land tax system," he said.
