The Perth residential sales market continued its growth trajectory for a tenth consecutive month in May, with the Core Logic Perth home value index increasing 1.1 per cent during the month.
REIWA President Damian Collins said that brought Perth price growth to seven per cent for the first five months of the 2021 calendar year and 10 per cent since July 2020.
Median house sale price
Perth’s median house sale price for May was $510,000, with reiwa.com data revealing 81 suburbs recorded house sale price growth during the month.
“The top performers were Attadale (up 4.9 per cent to $1.25 million), Scarborough (up 3.8 per cent to $755,0000), Melville (up 3.6 per cent to $860,000), South Lake (up 3.6 per cent to $400,000) and Hamilton Hill (up 3.5 per cent to $490,000),” Mr Collins said.
“Nedlands, Atwell, Craigie, Floreat and Bicton also performed well.”
Median selling days
Competition among Perth buyers remains high, with the median time to sell sitting at 14 days for May.
“Median selling times are still sitting close to 15-year lows, with buyers needing to act very quickly to secure a property,” Mr Collins said.
Listings for sale
There were 9,020 properties for sale in Perth at the end of May on reiwa.com.
“This is 0.8 per cent more than there were at the end of April and 14.9 per cent more than three months ago. The figure for May is also the first time we have seen listings sit above 9,000 since November 2020,” Mr Collins said.
“Given the buoyancy of the Perth sales market, more and more people are recognising that there is good opportunity to sell their home for a competitive price which is leading to an increased number of properties on the market.”
Perth rental market
Listings for rent increased 3.8 per cent in May, while the Perth median rent price was stable during the month.
“While the rental market has some way to go before it balances out, the signs are encouraging that we are on the right track. Since the moratorium ended in March, we’ve seen investor activity start to build again, as evidenced by last month’s ABS investor finance figures, which is producing more rental stock and helping to slow down rental price growth,” Mr Collins said.
Listings for rent
“Not only are listings up 3.8 per cent for the month, but over the last three months we have seen rental listings increase 7.4 per cent, which is quite substantial after a long period of declines,” Mr Collins said.
The 10 suburbs to record the biggest increase in rental listings during the month were Kewdale, Balcatta, Maddington, Mount Pleasant, Como, Cloverdale, Yanchep, Mindarie, Forrestfield and Claremont.
Median rent price
Perth’s median rent price was unchanged in May, holding at $420 per week.
“This is only the second time this year that we’ve seen the median rent price remain unchanged. The increase in listing volumes coupled with stable rents suggests the challenging market conditions facing tenants are beginning to ease,” Mr Collins said.
While the overall median rent price was unchanged during the month, 29 suburbs did record price increases.
“The strongest performers for median rent price growth during May were Alkimos (up $15 to $375 per week), Halls Head (up $15 to $390 per week), Gosnells (up $10 to $320 per week), Rockingham (up $10 to $350 per week) and Nollamara (up $10 to $360 per week),” Mr Collins said.
Leasing activity and median leasing times
There were 2,891 properties leased during May, which is four per cent more than April.
“The suburbs to record the biggest increase in leasing activity during the month were Secret Harbour (up 78 per cent), Piara Waters (up 60 per cent), Halls Head (up 57 per cent), Clarkson (up 55 per cent) and Wellard (up 43 per cent),” Mr Collins said.
reiwa.com data shows the median time to lease a property in May was 18 days.
“The median time to lease a property has been relatively stable since September 2020, hovering between 17 and 19 days. On an annual basis however, property investors are finding tenants for their rentals nine days quicker than they were this time last year.”
Sourced from Reiwa.com.au