Perth listings hit new low

The number of listings for sale in Perth dropped to a record low of 3,648 at the end of December, according to the Real Estate Institute of Western Australia.

This represents a 23.4% decrease compared to November and a 49% decrease compared to December 2022.

“It’s the perfect storm,” said REIWA CEO Cath Hart (pictured above). “We have incredibly high demand, with houses selling in near-record times, plus at this time of year the number of new properties coming to the market slows – people are busy with the festive season and go away and put their plans to sell on hold. As a result, the number of properties currently for sale is extremely low. However, this is expected to increase over January.”

Median House Price Continues to Rise

Perth's median house price continued its upward trend, reaching $590,000 in December. This represents a 0.5% increase compared to November and an 8.3% increase compared to the previous year The median unit price also saw a rise, with a 0.6% increase over the month and a 0.7% increase over the year, reaching $408,000.

Read next: This city’s median house price hits new high

“Unit prices have been much slower to respond to market conditions than houses, but they are seeing the effect of ongoing high demand now,” Hart said. “Our members are reporting that the overall drive to find a home, and particularly the strong motivation to exit the challenging rental market, is seeing greater demand for units. Units are generally more affordable than houses, which helps people put a foot on the property ladder.”

With Western Australia experiencing strong population growth and low levels of building completions, it is expected that prices will continue to increase in the future.

Suburbs with Significant Growth in December

According to reiwa.com data, several suburbs in Perth experienced notable growth in December. These include Kallaroo, which saw a 10.5% increase in median price to $1,071,500, Camillo with a 4.4% increase to $399,750, Mandurah with a 2.4% increase to $384,000, East Fremantle with a 2.3% increase to $1,672,500, and Southern River with a 2.2% increase to $700,000.

Decreased Time on Market for Houses

Houses in Perth sold at a median of 10 days in December, which is nine days faster than the previous year, REIWA reported. This indicates a high level of demand and a faster turnover in the housing market.

Stable Rental Market with Increasing Demand

Perth's median dwelling rent remained stable at $600 per week in December, representing a 15.4% increase compared to the same period last year, REIWA reported. The median weekly rent for houses rose to $620, a 1.6% increase from November and a 12.7% increase compared to December 2022. The median unit rent also increased, rising by 3.6% over the month and 20% over the year to $570 per week.

“WA’s growing population is fuelling demand for rentals as well as established homes,” Hart said. “When you have limited supply and high demand, price rises are the outcome. On the plus side, rental listings did start increasing towards the end of the year, which may indicate a slight easing of some of the pressure on the market.”

Decrease in Rental Listings

At the end of December, there were 1,518 properties available for rent on reiwa.com, which is a 21.0% decrease compared to November. However, it is worth noting that this number is 5% higher than December 2022.

Median Leasing Times

Homes in Perth were leased in a median of 15 days during December, which is one day slower than November and the previous year, REIWA reported.

The suburbs with the fastest median leasing times were Erskine (five days), Langford, Byford, and Doubleview (nine days), and Cannington, Duncraig, Alkimos, Beckenham, East Cannington, and Joondanna (10 days).

Have something to say about this story? Let us know in the comments below.