This article is from the Australian Property Journal archive
PROPERTIES in Perth are selling at their fastest rate since 2006 as the sales market continues to improve over the second half of 2020.
Properties across Western Australia’s capital city are staying on the market for a median of only 22 days, that’s 17 days shorter than November 2019.
“The demand for quality stock is evident, with properties selling at the same speed as they did 14 years ago, when Perth was in a property boom. In addition, the level of discounting has reduced to 32 per cent of all transactions, compared to 49 per cent in November 2019,” said Damian Collins, president at REIWA.
Supply is still down with listings down 28.7% from last November and 1.3% compared to October of this year.
REIWA data revealed that 50% of suburbs has an increase in median sale price and an additionally 29% of suburbs remained stable over November. Perth dwellings overall increased for the fourth consecutive month, going up by 1.1% in November according to CoreLogic.
The biggest increase to median prices in November was by 7% in Kelmscott, with prices reaching 353,000. This was followed by increases of 6.8% in Hillarys, 4.1% in Rockingham, 3.8% in Marangaroo and 3.6% in Armadale.
Contrastingly there was an increase in rental stock, rising by 3.7% in November, though levels are 52% lower than the same period in 2019.
Stock levels have however, remained under 3000 listings for the third month in a row, with only 2,889 properties for lease on reiwa.com. This limited stock and a vacancy rate of 0.95% has pushed the median weekly rent up to $390 per week.
Both Freemantle and Mandurah saw increases of 3.7% in median weekly rent in November, followed by an increase of 3.4% in Huntingdale, 3% in Subiaco and 2.9% in Nollamara.
“With investor interest on the increase due to the rental shortage, this will help boost stock levels and help keep rent increases at reasonable levels, however it’s crucial the rental moratorium ends as promised in March 2021,” concluded Collins.
