Understanding the statistics

April 26, 2010

It is important to understand that all properties are different, especially in the prestige markets in Applecross, Mount Pleasant, Attadale and surrounds.

When the official REIWA website says that the median price in Perth went up 12%, or Applecross went down 20% etc, really this has no bearing at all on every single house. It measures a particular segment, and helps get an overall trend, but is not a guarantee that a specific house was the same.

Each market has different segments; the market of Applecross for example can have 8 plus segments.

2 bed apartments from $500,000 (approx), to properties below $1 million dollars, to the $1 to $1.5M segment, then $1.5m to $2M, the $2 to $3M, $3 to $4M, $4m plus to $5m, $5 to $8m then the real top end properties $8m plus to $15m.

Clearly, whatever happens in Perth medium priceville has no bearing on all of these segments. Some segments in Applecross can be going up, while others are doing nothing, and some can go down. Each segment is unique, and is always supply and demand driven.

Experts in the local markets will know what is selling, and for what. That is the true indicator of value, the market value or sale price of recent similar properties. If there is strong demand for a particular property and short supply, then that can equate to price growth, irrespective of what the official stats say.