Demand side factors have also been influential, especially with interstate migration rates tracking well above average in WA.
The largest jump in annual sales relative to the historic five-year average has been in Perth, where the number of homes sold last year was 29 per cent above average levels.
Herron Todd White director Chris Hinchliffe said what a lazy $750,000 could get you in the current market around WA had changed markedly from a year ago.
“As the real estate landscape continues its dynamic evolution, it’s crucial for buyers to stay informed,” he said.
“What $750,000 could have secured you 12 months prior probably looks quite different today.”
The established inner northern suburb of Dianella was developed in the 1960s, and has a median house price in of around $735,000.
This property at 471 Grand Promenade on an 807 square metre block with a circa 1963 house features three bedrooms and one bathroom with original features. It sold in March for $730,000.
Hinchliffe said valuers had reported a significant upward trend in the coastal suburb of Alkimos with only five sales recorded in the $750,000 range from January to May last year.
He said Gosnells had also been receiving significant interest of late as investors cottoned on to its potential.
“Gosnells has seen a 24 per cent increase in median price in the past 12 months, reaching $465,000, with the highest number of sales at 606 transactions during the year, the highest among its neighbours,” he said.
“Comparatively, Kelmscott’s median price surged by 30.4 per cent to $484,000 across 354 transactions, while Huntingdale saw a 12.1 per cent increase to $560,000 from 129 transactions.
“Maddington experienced a 19.4 per cent rise to $478,000 over 306 transactions and Thornlie had an 18 per cent boost to $566,000 from 412 transactions.”
Ray White Group head of research Nerida Conisbee said WA had surpassed national averages with Perth now Australia’s fifth most expensive housing market.
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“Looking forward, recent inflation data has reignited discussions about potential interest rate hikes, which could impact property listings,” she said.
“The ongoing imbalance between housing supply and demand continues to drive price increases, while affordability concerns grow amid persistent inflationary pressures.”
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