The property market in Perth has recently stagnated, following a receding mining sector. But, there is hope that low interest rates could stimulate and bolster the capital city’s housing sector and set the city on the road to recovery.
Pricing in Perth has suffered over the past year, with a 2.5% drop in the median house price, which sat at$557,567 in December 2017. (Source: Domain Group House Price Report, December 2017). This puts the city behind eastern state property powerhouses.
However, lower house prices often come with an added tag of affordability. While house prices are going down, low interest rates mean that affordability and lower entry barriers for the market could see improvements for Perth in the year to come.
What you need to know about real estate agent fees in Perth
The average real estate agent fee for Perth sits slightly lower than the overall Western Australian average commission rate of 2.38%. Agents in Perth charge an average of 2.31%.
It is a general trend that lower commission rates occur in more populous areas with higher property prices, larger numbers of active real estate agents, and added lifestyle benefits like good shopping districts and schools.
Suburbs closest to Perth CBD showed some of the lowest average real estate agent fees in the capital city over last year, with average commission rates at the 2.05% mark; neighbouring suburbs Noranda, Morley and Embleton are among those suburbs.
Perth areas that tend to attract higher average real estate agent fees are those south of the Swan River; these are outer metro regions with fewer competing real estate agents in operation and a lower population density.
What to consider when researching real estate agent fees in Perth
As the West Australian economy is recovering and the property market is sluggish, it is important to select a real estate agent based on more than just the fee; compare agents on factors such as marketing and a good track record for selling similar properties.
Real estate agent fees in Perth are deregulated, which means real estate agents and homeowners negotiate a commission rate that they believe is suitable.
Different suburbs in Perth attract varied commission rates, but agent fees can also depend on factors such as your property type, your specific location. To get a better estimate of agent fees for your property, compare quotes from a number of local agents.
Curious about real estate agent fees in your neighbourhood? LocalAgentFinder is an impartial, online comparison service that helps you compare local agents so you can find the one that’s right for you.
To determine the average commission by capital city, LocalAgentFinder took the average commission of all active agents in each city respectively on 21 March 2018. This included agents with tiered and fixed commission structures based on a $500,000 selling price.
This article was updated on 11th April