Perth’s median house sale price continues to rise, increasing 1.9 per cent in August and 20.7 per cent over the past year to reach $688,000.
The median unit sale price set a new record, rising 1.1 per cent over the month to $455,000 which is 13.8 per cent higher year-on-year.
REIWA CEO Cath Hart said the market was experiencing extraordinary conditions, with no signs of easing in the short term.
“At the moment there is clearly the appetite for, and ability to, buy property and it will take a significant change in demand or supply to ease the pressure in the established homes market,” she said.
“Members are still reporting strong numbers at home opens and they continue to receive multiple offers over the asking price, with some offers well above it.”
Suburbs with the most house price growth in August were Willetton (up 5.6 per cent to $1,125,000), Westminster (up 4.2 per cent to $565,000), Mindarie (up 4.0 per cent to $1,050,000), Thornlie (up 3.1 per cent to $630,000) and Armadale (up 2.7 per cent to $488,000).
Duncraig, Lakelands, Falcon, Hocking and Swan View were also among the top performers, recording growth of 2.5 per cent or more over the month.
Time on market
Houses and units sold in a median of nine days in August, unchanged from July but one day faster than a year ago.
According to reiwa.com data, the fastest selling suburbs for houses were Parmelia (three days); Clarkson, Rockingham, Spearwood, and Yangebup (five days); and Cooloongup, Thornlie, Atwell, Greenfields, and High Wycombe (six days).
Listings for sale
Active listings* settled at 3,499 at the end of August. This was 9.4 per cent higher than July but 32.5 per cent lower than a year ago.
Ms Hart said strong demand and the speed of sales continued to keep active listings low.
Perth rental market
Perth’s rental market continued to moderate, with the median weekly dwelling and house rents holding steady at $650 in August. The median weekly dwelling rent was 12.1 per cent higher year-on-year, while the median weekly house rent was 8.3 per cent higher.
The median weekly unit rent dropped back to $600, 3.2 per cent lower than July however still 9.1 per cent higher year-on-year.
Ms Hart said after several years of very strong price growth in rents, the market was showing extended periods of stability.
“The median dwelling and house rent prices have been stable for six months. The median unit price has also been at $600 per week for five of the past six months,” she said.
“We’re seeing the annual growth rate for rent prices slow, dropping back from around 20 per cent earlier this year to single digit growth for units and houses.
“This is a period of change and I encourage investment property owners to discuss the conditions in their local market with their property manager when it comes time to review rents.
“The rental market is still very tight but the frenzied conditions of the past few years have eased. While there is often still strong interest at home opens, property managers are receiving fewer applications.”
According to reiwa.com, the suburbs that saw the most growth in their median weekly dwelling rent price in August were Wembley (up 7.3 per cent to $590), Spearwood (up 6.7 per cent to $640), Claremont (up 6.7 per cent to $800), Applecross (up 6.7 per cent to $800) and Maylands (up 6.1 per cent to $520).
Listings for rent
There were 2,182 properties available for rent on reiwa.com at the end of August. This was 12.8 per cent lower than July, but 33.6 per cent higher than the same time last year.
“August was the first month since February where leases outpaced new listings, which explains the decline,” Ms Hart said.
“And while available properties were down month-on-month, they are significantly higher year-on-year, which is positive.”
Median leasing times
Homes leased in a median of 19 days during August, one day slower than July and four days slower than the same time last year.
“While properties in higher price brackets are generally taking longer to lease, other trends are emerging that are pushing out the time it takes to secure a new tenant,” Ms Hart said.
“For example, some members are reporting instances where successful applicants are pulling out after they have been accepted for a property.
“There are several reasons for this. They may decide the property isn’t right for them, or they may be applying for a new property towards the end of their current lease as they’re not sure if their lease will be renewed, to then be told they can stay and withdraw their application after having been accepted for the new property.
“This means the property manager needs to find another tenant, which is affecting the time it takes to fill a vacancy.
“Conditions do vary from suburb to suburb, and within price brackets, so I urge property owners to discuss local conditions with their property manager.”
reiwa.com data showed the suburbs recording the fastest median leasing times were Nollamara and Tuart Hill (11 days); Como, Duncraig and Gosnells (12 days); Innaloo (13 days); and Mount Lawley, Balga, Cannington and Clarkson (14 days).
* Active listings – the number of properties advertised on reiwa.com at any given time. New listings – new properties listed for sale.
Sourced from REIWA