Perth is currently Australia’s fastest growing major market
4th February, 2021
CoreLogic data revealed that Perth’s home value index lifted 1.6 per cent in January and 3.8 per cent compared to three months ago, currently making it the fastest growing major market in Australia.
REIWA President Damian Collins said reiwa.com data supported these findings, with Perth’s median house price increasing to $490,000 in January.
Residential sales market
“The improvement experienced in the latter half of 2020 has continued into 2021, which is pleasing to see. With the pandemic continuing to impact travel and our local economy bouncing back after a challenging year, more and more West Australians are recognising that now is the time to buy,” Mr Collins said.
Sales listings and median selling days
In January, there were 8,287 properties for sale in Perth on reiwa.com.
“This is up 1.2 per cent on December, however down 33.3 per cent when compared to the same time last year, which indicates we are significantly below levels seen a year ago, however we expect more sellers will see the benefits of listing their properties now rather than later,” Mr Collins said.
“Properties continue to sell at a faster rate than they did last year, with the median days to sell sitting at just 21 days, down from 43 days in January 2020. There is little doubt now that the Perth market has swung into the seller’s favour and buyers are needing to act a lot faster to secure a property.”
House and unit sales were slightly down in January, following the unprecedented sales spike recorded in December.
“The spike in sales Perth experienced during December was quite unusual, typically we see activity drop off in December and January, before lifting again as we get further into the New Year,” Mr Collins said.
“Despite sales activity trending lower in January, numerous suburbs still saw house sales improve, with the top five selling suburbs including Meadow Springs (up 75 per cent), Yangebup (up 67 per cent), Mandurah (up 67 per cent), Alkimos (up 64 per cent) and Heathridge (up 44 per cent).”
Perth rental market
January marked the fifth consecutive month there were fewer than 3,000 properties listed for rent in Perth.
“There were just 2,826 properties for rent in January 2021, compared to 5,784 in 2020, which is a drastic reduction in stock and we currently have a serve rental shortage,” Mr Collins said.
“While in the short term these conditions will entice investors back to the market, it is imperative the WA Government keep their promise to end the rental moratorium on 28 March 2021 to ensure the situation does not worsen.”
According to CoreLogic’s Quarterly Rental Review (December 2020 quarter), Perth was the fastest growing rental market in 2020, which is a trend that is continuing into 2021 with reiwa.com data revealing Perth’s median house rent increased by $5 to $400 per week in January.
“The suburbs to experience the most notable increase in rent prices in January were Subiaco, which saw its median rent lift by $20 per week, as well as Thornlie, Alkimos, Morley and Halls Head which all experienced $10 weekly increases in their median rents,” Mr Collins said.
“With the rental stock levels remaining low and expected to do so in the coming months, combined with low interest rates and expected gross yield growth, we will expect investor numbers to increase in the latter end of the year, particularly when the moratorium ends in March.
“With the announcement of the first case of community transmission of COVID-19, there will be a restriction on home opens for five days, but it will have a minimal short-term impact on the market, unless we see a sustained lockdown and a significant economic impact, the property market is likely to continue its strong recovery.”