Perth, WA -- (SBWIRE) -- 11/04/2014 -- The Real Estate Institute of Western Australia (REIWA) released new statistics regarding the property market in Perth. The conclusion of the report is that the property market is start to look better for new home buyers.
The numbers behind recent sales activity from this year provides a deeper look.
After seeing strong growth over the past year, Perth house prices are beginning to fall. Research reveals that housing values in Perth fell in August by 1.84 per cent. While only a small decline, the data shows that the market in Perth is now beginning to slow down.
Data compiled by REIWA show that the number of house and unit sales fell to just over 50,000 during in 2013-14. The previous year saw sales of 52,000, demonstrating a clear decrease in activity. Transactions were 5 per cent less than the average over 15 years in Perth.
This is in stark contrast to the Sydney and Melbourne property markets which continue to see strong growth.
Increased demand from first home buyers helped push the median house price in Perth to $550,000 last year before trending down to $540,000. Sales were down in South Perth and Victoria Park while outer suburbs actually saw an increase.
The data indicate that the property market is experiencing growth in some areas but decline in others. David Airey, President of REIWA, believes that part of the increase in first home buyer activity is due to recent changes in the transfer stamp duty.
The threshold for stamp duty exemption was reduced from $500,000 to $430,000 on 1 July by the WA Government, prompting many to enter the market. With these changes, first home buyers are exempt from duty on purchases of vacant land up to $300,000 which help to encourage more people to build their first home.
This makes the Perth property market favourable to first first home buyers. Combined with record low interest rates and qualifications of up to $10,000 with a First Home Owners Grant (FHOG), new buyers are in a strong position to enter the market and explore their options.
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