Median house sale prices hit new high last year
In 2023, the Perth property market demonstrated resilience and strong performance, despite a perceived shortage of homes for sale, according to the Real Estate Institute of Western Australia.
The market saw 53,895 settled sales across houses, units, and land, which is only 3.3% lower than the previous year. The total value of sales reached $34,847,370,352, marking a 1.7% increase from 2022. REIWA CEO Cath Hart attributed this increase in total value to the rise in sale prices across Perth.
“2023 was a record-breaking year for the market, with the median house sale price reaching a new high of $590,000,” Hart said. “And while the median unit sale price was stagnant for most of 2023, it recorded 2.0% growth in the last quarter of the year to settle at $408,000. This is just 0.7% higher than at the end of 2022 but more growth is expected in 2024.”
Bullsbrook recorded the highest price growth for houses, with its median house sale price increasing by 33.3% to $530,000. The focus on affordability was evident in the Top 10 for house sales, with most suburbs having median house sale prices below $530,000.
Top 10 suburbs for median price growth (houses)
|
Suburb |
Annual house sale price |
Change in annual price |
|
Bullsbrook |
$530,000 |
33.3% |
|
Shelley |
$1,175,000 |
30.9% |
|
Midvale |
$460,000 |
27.8% |
|
Kenwick |
$470,000 |
25.3% |
|
Cooloongup |
$$487,750 |
25.1% |
|
Armadale |
$380,000 |
23.4% |
|
Woodbridge |
$800,000 |
23.1% |
|
Parmelia |
$430,000 |
22.9% |
|
Camillo |
$401,000 |
22.6% |
|
Swanview |
$512,500 |
22% |
Source: REIWA
Rental market
The rental market also saw significant developments, with the median weekly rent reaching $620 for houses and $570 for units by the end of December, REIWA reported. The vacancy rate remained at 0.7% for 10 of the past 12 months, indicating sustained demand and low supply. Perth's relatively affordable housing and strong rental market have attracted the attention of Eastern States investors, with high yields in certain areas drawing their interest.
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In terms of rental yield, units outperformed houses, with the Top 10 suburbs for units recording yields above 7.4%, surpassing the number one suburb for houses at 6.4%. The median leasing time for Perth properties hovered around two weeks, reflecting the continued demand in the rental market, according to REIWA.
Overall, the Perth property market in 2023 showcased robust performance, setting new records in sales, prices, and rentals. The market's ability to weather challenges and maintain strong growth has positioned it as an attractive investment destination, drawing interest from both local and interstate investors.
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