According to Ray White’s chief economist, Nerida Conisbee, Perth’s geometric mean (whereby an average is found by multiplying sales prices together then taking the nth root of the set) house price is $970,000, up by a nation-leading 12.4% across the year. Fremantle’s local government area has grown in line with the metropolitan figure, expanding its house price by 12% to $1,520,000.
Brisbane’s market came in second gaining 10.5% for the past twelve months to be at $1,090,000. Adelaide grew 9.7%, Darwin 9.6% and Hobart 5.6%. Sydney’s mean house price is $1,680,000, the highest in the nation with Melbourne at $1,050,000 and growing by 4.3% for the year – now the slowest market in Australia.
Apartments are also gaining in value across the nation albeit at a slower pace than detached houses in most places. However, Perth’s mean unit price put on 14.5% growth in twelve months now at $640,000. Apartments across Fremantle are now priced at a mean of $840,000, a gain of 12.1%. This tells us that more rapid gains are apparent in the more affordable end of the local housing market due to buyer affordability constraints and higher demand for cheaper homes.
For our local market, it won’t surprise to learn most of the house price growth has occurred in the past five years. Fremantle’s mean house price in August 2020 was $800,000. It has nearly doubled since then putting on 90% growth. In August 2015, Fremantle’s mean house price was $830,000 and dribbled along through to 2020 before the COVID-induced stimuli impacted our market.
The majority of our local sales are in the $750,000 – $1,500,000 range with 85 house transactions for the year to date and only 6 sales across the local government region above $3,000,000. Meanwhile, listings across our region have nosedived, falling 22% last month and down 10.7% from this time last year.
With the Home Guarantee Scheme commencing next week, whereby first home buyers can purchase a home with a 5% deposit for property priced up to $850,000, demand for lower-priced homes is set to increase, putting further upward pressure on prices. Strap in for some strong property price gains this spring and summer.
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