This article is from the Australian Property Journal archive
PERTH’S nation-leading house price growth continued in September, at 1.7% month-on-month, as buyers kept pace with the spring selling season jump in new listings.
REIWA data showed active listings lifted 8.4% over the month to 3,952. Active listings are 19.0% lower than at the same time last year, although is a significant improvement compared to November 2023 to May this year, when volumes were 40% lower year-on-year.
They remained more than 30% lower compared to the previous year in every month from May 2023 onwards.”
REIWA CEO Cath Hart said new listings had increased compared to the months leading up to the spring selling season, which had seen active listings rise.
“Spring is one of the strongest sales periods of the year and members are reporting more listings coming to market, with new listings exceeding the number of sales over the past month,” she said.
“Properties are still selling very quickly though, which will keep active listings relatively low.
Perth’s median house price is 21.5% higher year-on-year, now sitting at $700,000. The median unit sale price is 2.2% over the month, to $465,000, showing a 16.3% year-on-year rise.
The city has been spearheading house price growth in recent times and more increases are expected over the remainder of 2024.
“There is still strong demand for established homes, fuelled by population growth and the ongoing constraints in the building industry,” she said.
“It will take a significant change in demand or supply to ease the upward pressure on prices in the established homes market.”
The suburbs that saw the most median house price growth in September were Coodanup (up 3.5% to $538,000), Bassendean (up 3.2% to $765,000), Duncraig (up 2.9% to $1,140,000), Dudley Park (up 2.9% to $615,000) and Kelmscott (up 2.8% to $550,000).
Mount Pleasant, Forrestfield, High Wycombe, Applecross and Maylands all recorded growth of 1.9% more over the month.
Houses are being snapped at a median rate of 10 days, one day slower than August and one day slower than a year ago. Units also sold in a median of 10 days – also one day slower than August but six days faster than the same time last year.
The fastest selling suburbs in September were Brabham, Golden Bay and Yokine (five days); Balcatta, Como, Kingsley, Maylands, Secret Harbour, Wembley Downs (six days); and Kalamunda (seven days).
Rental market stable
Median weekly dwelling and house rents were unchanged at $650 per week in September. The median weekly dwelling rent was 12.1% higher year-on-year, while the median weekly house rent was 8.3% higher.
The median weekly unit rent held steady at $600, also 12.1% higher in annual terms..
Hart said “it’s interesting time” in the rental market.
“In some cases, when leases end, we are seeing homes come back to market at lower prices, but currently this is more of a correction than a sign of falling prices.
“It is often occurring because the original tenant offered well over the original asking price to secure the property and the new rent price reflects the current market price.
“The high level of competition we saw in the past few years has eased, and the market has reached an affordability ceiling, so property owners can no longer expect to see tenants offering significantly over asking prices for properties.”
The biggest increases in weekly median dwelling rent price were Belmont (up 8.3% to $650), Waikiki (up 4.1% to $573), Victoria Park (up 4.1% to $640), Willetton (up 4% to $780) and West Perth (up 3.2% to $650).
There were 2,049 properties available at the end of September, 6.5% lower than August but 22.0% higher than the same time last year.
“New rental listings in September were almost on par with new leases, which is why we haven’t seen this figure increase, despite the change in the vacancy rate.
“Listings are higher year-on-year, which is a positive sign for prospective tenants.”
Homes leased in a median of 16 days during September, three days faster than August but two days slower than the same time last year.
Houses are leased fastest in Morley (median of 11 days); and then Joondalup, Nollamara and Spearwood (12 days); Wembley, Ellenbrook and Mandurah (13 days); and Rivervale, Balga and Belmont (14 days).
