"Demand shows no signs of slowing"
Perth's median house price reached a new high of $585,000 in November, with houses changing hands at a record pace, according to the Real Estate institute of Western Australia.
“Demand shows no signs of slowing,” REIWA CEO Cath Hart (pictured above) said. “This is maintaining upward pressure on house prices, which have risen 8.2 per cent in the last 12 months. The underlying trends show more increases are on the horizon.”
Unit prices in Perth also experienced a rise, reaching $405,000 in November, up from $400,000 in October, REIWA reported. The data suggests that the unit market can expect more price increases in the future.
“There are several factors behind the ongoing strength of the Perth property market,” Hart said. “One is population growth. WA’s population rose 2.8% in the year to March. Data for June will be published in mid December and the background indicators suggest we can expect similar growth to March. Secondly, the ongoing challenges in the rental market are seeing people look to buying if they can. And the constraints in the building industry are also seeing people turn to the established homes market.”
Fastest-selling suburbs
The fastest-selling suburbs in Perth in November were Beechboro, Brabham, Greenfields, Seville Grove, and Warnbro, all with a median time on the market of four days. Butler, Camillo, Clarkson, Cooloongup, and Dudley Park recorded a median time on the market of five days.
These suburbs, with median house prices below the overall Perth median, highlight the demand for affordable homes, REIWA reported. Units also sold quickly, with a median time on the market of 12 days.
Listings for sale
The number of listings for sale in Perth remains low, with 4,738 listings on REIWA's website at the end of November.
“New listings are still coming to the market,” Hart said. “We have seen the traditional spring boost, with new listings in November 25.7% higher than September, but homes are selling incredibly quickly and this is keeping the listings that you see on www.reiwa.com consistently low.”
Rental market
In the rental market, Perth's median dwelling rent price reached a new record of $600 per week in November. This represents a 1.7% increase from October and a 20% increase compared to the same time last year. The median weekly rent for houses rose to $610, a 15.1% increase from November 2022, while units remained stable at $550, reflecting a 17% rise from a year ago.
“The reality is that we can expect more increases over the coming months,” Hart said. “We are not seeing an increase in underlying rental supply, but there is strong demand, which is maintaining upward pressure on prices.
“We may see some slight moderation in rent prices as tenants find ways to cope with low supply and rising prices,” she said. “For example, demand may fall slightly if we see a greater increase in tenant household sizes, more people electing to buy - although this has challenges of its own - or people simply choosing to stay in the family home longer or moving back in with their parents to avoid the rental market.”
Read next: WA house prices will continue to grow – REIWA
Inglewood, Joondanna, Como, Orelia, and Leeming were the suburbs that saw the most growth in their median weekly rent price in November.
Listings for rent
There were 1,948 properties available for rent on REIWA's website at the end of November, a 12.3% increase from October and a 5.1% increase from a year ago. The median leasing time for a rental property in November remained unchanged from October and the previous year, taking a median of 14 days to lease a property.
Suburbs such as Leeming, Bentley, Leederville, East Victoria Park, Hillarys, Scarborough, Applecross, Balcatta, Cannington, and East Cannington recorded the fastest median leasing times.
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