"Our market remains resilient and stable"
Perth’s property market is continuing to hold steady in the face of repeated interest rate hikes, according to new data from the Real Estate Institute of Western Australia.
“Our market remains resilient and stable, particularly when compared to the east coast,” said REIWA CEO Cath Hart. “While other capitals saw values jump dramatically during the pandemic, the COVID effect was much more subdued in Perth, and as a result we are seeing less of a correction following the interest rate rises.”
Hart said the market’s stability would continue even in the face of expected future rate hikes.
“Perth and WA are still in an excellent position to weather future rate rises, with our strong economy, growing population, limited stock levels and affordable housing,” she said.
Top suburbs
CoreLogic’s home value index for Perth decreased marginally last month, down 0.3% from December and 0.1% since October. All capital cities posted declines, with Brisbane and Hobart recording the largest falls over the month and over the quarter.
The top-performing Perth suburbs for price growth in January were:
- Fremantle – up 2.1% to $1.062,000
- East Victoria Park – up 2.1% to $740,000
- Yangebup – up 2% to $540,000
- Ballajura – up 1.7% to $500,000
- Mount Lawley – up 1.5% to $1,217,500
- Success – up 1.5% to $593,500
Listings still low
There were 7,104 properties for sale on reiwa.com at the end of January. That’s up from the 12-year low of 6.931 reported for the prior month, but still 10% lower than levels recorded a year ago. REIWA day showed that property listings have been below 8,000 and close to 7,000 since Dec. 25.
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Hart said the small number of new properties coming on to the market was cause for concern.
“We saw the number of new listings decline 13% in the second half of 2022 and new listings in January are down 24% from a year ago,” she said. “This is what we would expect following the interest rate rises as people become more cautious and wait to see what happens. It has helped keep values stable as it has limited supply relative to demand.”
“However, if new listings remain low, we’ll see the number of properties for sale continue to decline and the housing shortage worsen,” Hart said. “And while we were expecting some relief as building completions increased later this year, HIA data showed new home sales in the last quarter of 2022 were 30.9% lower than the same time in [2021], suggesting the supply of new housing will decline. This will further exacerbate the housing shortage.”
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