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Market favours big-ticket sales | The West Australian

Million dollar-plus property sales in Perth became more commonplace in 2018.

Data from Corelogic reveals the share of sales in this price bracket increased from 7.8 per cent to 9.3 per cent last year.

The figures show that nationwide, demand for more expensive properties has climbed over the last 25 years.

In 1993 the overwhelming majority of sales occurred below $200,000 compared to virtually none below that price in 2018.

Between those two extremes, the figures show the most prominent price point for sales in Perth was in the $200,000-$400,000 range.

“Perth dwelling values have been falling for most of the past five years,” Corelogic analyst Cameron Kusher said.

“Despite these falls, the share of sales of million dollar-plus properties increased from 7.8 per cent to 9.3 per cent; so too have sales priced between $200,000 and $400,000, increasing from 24.5 per cent five years ago to 30.7 per cent.

“There has also been a slight increase in sales under $200,000, from 2.2 per cent 3.3 per cent.

“There were more sales of at least $1 million than there were below $200,000 or between $800,000 and

$1 million.”

This apparent decline in transactions of more affordable properties is probably a reflection of a lack of supply, according to industry executives.

Mark Hay Realty Group principal Mark Hay said he had noticed houses at higher price points out-selling those at the lower end of the scale over the past decade or two.

“Obviously as our average price point of property moves upwards, there is going to be less activity at the bottom of the market,” he said.

“There are just less houses for sale under $200,000 today than there were in the 1990s.”

Ray White selling principal Brent Compton echoed Mr Hay’s opinion, saying there were more million-dollar than $200,000 properties for sale.

“I also think there would be more buyers with budgets of over a million dollars than those looking to buy a home for less than $200,000,” he said.

Mr Hay also attributed the number of big-ticket sales to buyers who were taking advantage of today’s low interest rates and soft market to upgrade.

“They sell their $600,000 property and upgrade to a million-dollar property with a significant saving on the price,” he said.

“In a low interest rate environment it makes it a reasonably cost-efficient transaction to sell and purchase higher so therefore there’s been significant upgrading.”

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