December sales activity saw 3,067 transactions for the month which is an increase of 42.5 per cent when compared to the same time the year prior.
Perth Residential Sales Market
REIWA President Damian Collins said traditionally December experiences a reduction in the number of house sales due to buyers going away for the festive period, yet this year we have seen a significant increase in buyer activity, which suggests that people are taking advantage of the market conditions whilst they are unable to travel.
Listings for sale
“Agents on the ground have reported that good, quality stock is being snapped up fairly quickly and with listings for sale decreasing 16.5 per cent in December, it is only a matter of time before median prices start to increase,” Mr Collins said.
Median sale price
Perth’s median house price remained stable in December to sit at $480,000 with reiwa.com data revealing that 45 per cent of suburbs saw an increase during the month.
While reiwa.com data shows the Perth median house price has stabilised, the latest figures from CoreLogic, show house values increased 1.1 per cent in December.
“reiwa.com data reveals Kelmscott saw the largest increase in median sale price in December with a 6.2 per cent increase to $375,000, followed by Yokine with a 4.8 per cent increase to $650,000 and Wellard with a four per cent increase to $399,500,” Mr Collins said.
“Rounding out the top five was Girrawheen which also experienced a four per cent increase to $310,000 and Applecross with a 3.4 increase to $1.5 million.
Looking forward
“Perth remains very favourable for buyers and investors, however with REIWA expecting Perth’s median price to grow between six and 10 per cent in the 2021 calendar year, I would advise those who are thinking about purchasing their first home, trading up or investing, to act soon before prices inevitably rise.”
Perth Rental Market
There were 3,655 rental properties leased in Perth during December, an increase of nine per cent compared to November 2020.
Leasing activity
Mr Collins said in recent months leasing activity has been declining however it is pleasing to see in a time where we traditionally see activity slow down, that it has picked up.
reiwa.com data shows 100 suburbs saw an increase in leasing activity in December, with East Victoria Park, Harrisdale, Cloverdale, Averly and Port Kennedy the biggest improvers.
“Other suburbs to perform well were Willetton, Maylands, Clarkson, Bayswater and Applecross,” Mr Collins said.
Listings for rent
“While leasing activity increased in December, we saw listings continue to decline with a 14.5 per cent decrease when compared to November and 56.6 per cent decrease when compared to December 2019,” Mr Collins said.
Median rent price
Perth’s overall median rent increased $5 to $395 per week, which is the fourth month in a row rents have increased and is the highest it has been since February 2016.
“In December it is Perth’s higher end of the market which has dominated the top suburbs to see an increase in median weekly rent, with Mount Pleasant and Duncraig increasing four per cent to $550 and $520 per week,” Mr Collins said.
“This was followed by Applecross which increased three per cent to $650, Alkimos increasing 2.9 per cent to $340 and Wanneroo which also increased 2.9 per went to see a $360 per week increase.
“As we see rental stock levels continue to remain low, we can expect rents to continue increasing, however we need to remember that rents are still a lot cheaper than they were in 2014.”
Source: reiwa.com.au