First-home buyer activity skyrockets 105%
Sales activity has more than doubled in 10 Perth suburbs, with first-home buyer activity skyrocketing 105%, according to the Real Estate Institute of Western Australia.
Settled sales data for the March 2021 quarter revealed that 10 Perth suburbs have more than doubled their sales volumes compared to the March 2020 quarter. REIWA President Damian Collins said that the March quarter saw strong sales growth across Perth, with a 31% increase over the March quarter. Ten suburbs, however, stood out from the pack with more than 100% sales-activity growth during that time.
“Wambro led the way, with 167% more sales in the first quarter of 2021 than the same time last year,” Collins said. “Second was Seville grove (161%), followed by East Victoria Park (152%), Carramar (144%) and Westminster (129%).”
Mandurah, Dawesville, Wannanup, Beeliar and Maddington also posted sales activity growth of more than 100%. A total of 138 suburbs in Perth posted increased sales volumes in the March quarter, according to REIWA.
The majority of the suburbs that saw significant sales growth have a median sale price around or below the Perth median of $510,000. Collins said that suggested that many first-home buyers were opting to buy instead of rent, encouraged by relatively affordable house prices and record-low interest rates.
“In conjunction with the increased sales activity, WA also had the biggest annual increase in first-home buyers in the country, with the latest Real Estate Institute of Australia (REIA) Housing and Affordability Report revealing that first-home buyer activity in WA increased 105% year over year,” Collins said. “Even though the property market has started to heat up, it’s comforting to know the dream of homeownership is still very much achievable in WA.”
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Collins said he was pleased to see the uptick in sales translate to increased median sale prices in the top 10 suburbs.
“Out of the top 10 suburbs on this list, Wannanup recorded the biggest increase to its median house sale price when comparing the March 2021 and March 2020 quarters, increasing 21.2% to $515,000. This was followed by Mandurah (up 15.5% to $280,000), Seville Grove (up 13% to $339,000), East Victoria Park (up 10.7% to $650,000) and Carramar (up 10.6% to $520,000).”
Despite these hikes, Perth had the lowest median house price in Australia, which is driving first-home buyer activity in the suburbs, REIWA reported.
“As the market continues its recovery, we should see buyer confidence continue to gain momentum,” Collins said. If you are thinking of purchasing your first home, you can be assured there is still excellent affordability in the WA market.”
Ryan Smith is currently an executive editor at Key Media, where he started as a journalist in 2013. He has since he worked his way up to managing editor and is now an executive editor. He edits content for several B2B publications across the U.S., Canada, Australia, and New Zealand. He also writes feature content for trade publications for the insurance and mortgage industries.LinkedIn | Email
