Suburbs in Western Australia have reported a significant increase in sales activity in an otherwise slow month for property transactions, according to the latest report from the Real Estate Institute of Western Australia (REIWA).
Damian Collins, president of REIWA, said December has traditionally been known as one of the slower months to sell property.
"In 2020, this has not been the case and we have started to see a different trend emerge with sales activity in December increasing 42.5% compared to the previous year," he said.
House sales during the month increased by 50.5% while units registered a 51% gain. Land sales grew by 4.3%.
The growth in land sales, Collins said, is "not unusual" considering the significant increase in the segment in mid-2020 due to several government grants.
Of all suburbs, Banksia Grove performed the best in terms of sales activity, recording a 157% growth. The suburb ended the year with a median sale price of $371,000. This was closely followed by Fremantle, which registered a 100% increase in sales activity and a median of $767,500.
Erskine (38%), Yanchep (30%), and Mount Hawthorn (29%) also posted gains in sales activity.
While activity picked up in December, listings continued to decrease, down by 19.4% from the previous year. This has pushed prices, especially in Perth. In fact, figures from CoreLogic showed that the median dwelling price in Perth increased by 1.9% annually.
"Perth remains very favourable for buyers and investors; however, with REIWA expecting Perth’s median price to grow between 6% to 10% in the 2021 calendar year, I would advise those who are thinking about purchasing their first home, trading up or investing, to get in contact with your agent before prices inevitably rise further," Collins said.
