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Cottesloe has NOT dropped out of the $1mn club!

May 17, 2009 13:50 by author

There are lies, damned lies and statistics, as the saying goes. In another chase for headlines, some of the main media took liberties with a recent RP Data report that showed that Cottesloe, along with several other Perth suburbs, had dropped out of the million dollar club. Cottesloe's median price had (apparently) 'dropped 23.5%' to $785,000.

What the?!

What many (but not all) failed to mention was the Cottlesloe result was for sales of units only, while the data for the other suburbs was for established houses. Comparing unit prices against established homes is certainly not comparing apples with apples, and, statistically, a cardinal sin when chasing headlines for effect.

For the record, Cottesloe's median price (for established homes) in Dec 08 was $2,012,500, and the Mar 09 quarter figures should be out soon (we doubt it will be less than $1mn - UPDATE - it was $1.8mn). To check out 274 WA suburbs and towns, and chart their median prices over 5 years, go to our newly revamped suburb charts.

Categories: Property Market | WA
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Comments

May 18. 2009 10:34

Disreali sure knew what he was talking about. I doubt anyone in Cott was taken in by the false reporting.

Trevor

May 26. 2009 16:46

They say statistics are like a Lamp Post good for leaning a good argument against but not very illuminating !!!!

jacqui

May 27. 2009 20:25

** In fact, the latest median price data for the Perth suburbs has just been released by REIWA, and Cottesloe's median (middle) price of houses sold in the year to the end of the March 2009 quarter was $1.8 millon. 67 properties were sold in that time, and so $1.8mn is the representative price that had 50% of deals above it, and 50% below it. Medians are used as they are less likely to be skewed by outlying (unusual) house price deals. The latest Suburb Charts on aussiehome.com will be updated soon with all the latest REIWA data.

So, what we can say is that Cotteloe median price fell 9.4% over the year, having averaged 15.3% growth PER YEAR for the last 5 years. The highest property price sale in Cottesloe in the past 2 months was $7.3mn.

Charlie

May 29. 2009 13:17

We've just updated the price charts on aussiehome.com - go to http://charts.aussiehome.com/newchart2.aspx to view them - of the 273 suburbs we chart, 36 went up in the year to Mar 09 quarter, 53 stayed the same and 184 (68%) went down; so the Perth property market is certainly falling still (overall), although not everywhere.

Charlie

May 31. 2009 02:20

Anyone using a little bit of logic can see that a growth rate of 15.3% per annum is unsustainable. Unless real incomes are growing at the same rate or faster, then it is clear that the values are over-inflated if they are rising at a faster rate. When I see trends like this, I know with a great deal of certainty that a correction must take place somewhere along the line.

Bill

June 15. 2009 13:10

Just glad I dont kite there. I cant imagine people adhering to the 200m offshore rule either. After all you can kite choppy ocean anywhere along the coast. Each time Ive driven past and seen kiters out there I cant understand why guys kite there, narrow beach, kites flying over the car etc..
Anyway good luck to the locals there, its up to you guys to enforce these rules.

Mutuo