Even as house prices in the city reach a new high, attainable options remain
The median house price in Perth soared to a record high of $560,000 in July, according to the Real Estate Institute of Western Australia.
This represents a 0.9% increase from June and an impressive 4.7% surge compared to the same time last year. The previous peak of $545,000, which had stood since 2014, has now been surpassed.
“The median house price has been rising steadily all year,” REIWA CEO Cath Hart said. “While massive price hikes make great headlines, moderate increases are better for the market. They allow sellers to achieve capital growth over time, while ensuring home ownership remains relatively affordable and attainable. While the Perth median house price has reached a new high of $560,000, 99 suburbs have median house prices below this, so there are definitely affordable options for buyers.”
While house prices experienced significant growth, the median unit price faced a slight decline. In July, the median unit price dropped by 0.4% to $398,000, showing a 2.9% decrease compared to the previous year.
Various other market indicators remained stable during July, including median rent prices and time-to-sell and time-to-lease metrics, REIWA reported. The CoreLogic home value index for Perth revealed a solid 1% increase in July and a notable 3.2% increase over the past three months.
According to data from REIWA, several suburbs stood out for their strong house price growth in July. Wannanup experienced a 2.4% increase, reaching $599,000, while Nedlands rose by 2% to $1,989,750. East Victoria Park, South Yunderup, Secret Harbour, and Quinns Rocks also exhibited positive growth.
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The number of properties available for sale in Perth decreased to 5,181 by the end of July, representing a 3.1% decline from June and a significant 39.4% decrease compared to the previous year. The limited number of listings can be attributed to the swift pace at which properties are selling.
Looking ahead, Hart anticipates an increase in listings as the market moves into the spring season. However, she expects it may take some time before a balanced market is fully regained.
Rental market
In terms of the rental market, median rent prices in Perth remained unchanged in July. The median weekly rent for dwellings stood at $550, with the median rent for houses at $580 and the median rent for units at $525.
There were 1,876 properties available for rent on reiwa.com at the end of the month. That’s an 11.85 increase from June but a 16.45 drop from July 2022, REIWA reported.
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