Reiwa.com data has revealed properties for sale are in strong demand, with properties sold in November taking a median of only 22 days to sell, which is 17 days less than November 2019, making it the fastest time properties have sold since September 2006.
Perth residential sales market
REIWA President Damian Collins said the residential sales market has significantly improved in the latter half of 2020, creating the ideal conditions for those looking to sell.
“The demand for quality stock is evident, with properties selling at the same speed as they did 14 years ago, when Perth was in a property boom. In addition, the level of discounting has reduced to 32 per cent of all transactions, compared to 49 per cent in November 2019,” Mr Collins said.
“With listings for sale down 1.3 per cent in November compared to the previous month and 28.7 per cent lower than November 2019, it’s clear that if you are looking to sell there hasn’t been a better time for many years.”
CoreLogic’s latest home value index shows dwelling values in Perth increased 1.1 per cent in November – making it the fourth consecutive month of growth and the largest increase over that time.
“Breaking it down at the suburb level, reiwa.com data shows 50 per cent of suburbs experienced an increase in median sale price and 29 per cent saw a stabilised median in November, Mr Collins said.
“Kelmscott saw the biggest increase to its median in November with a seven per cent increase to $353,000, which was followed by Hillarys (up 6.8 per cent), Rockingham (up 4.1 per cent), Marangaroo (up 3.8 per cent) and Armadale (up 3.6 per cent).”
Perth rental market
Listings stock in Perth’s rental market rose 3.7 per cent in November when compared to the previous month, however levels are still 52 per cent lower than November 2019.
Mr Collins said with only 2,889 properties for lease on reiwa.com, this is the third consecutive month in a row that stock levels have been under 3,000.
“Due to limited rental stock and the vacancy rate sitting at 0.95 per cent, rents have continued to increase in November with the median weekly rent now sitting at $390 per week,” Mr Collins said.
“Fremantle and Mandurah were the top performing suburbs by median weekly rent in November with a 3.7 per cent increase. This was closely followed by Huntingdale (up 3.4 per cent), Subiaco (up three per cent) and Nollamara (up 2.9 per cent).
“With investor interest on the increase due to the rental shortage, this will help boost stock levels and help keep rent increases at reasonable levels, however it’s crucial the rental moratorium ends as promised in March 2021.”