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The number of active listings in Perth increased over March, albeit with annual price growth slowing and properties taking longer to sell compared to last year.
Recent data from the Real Estate Institute of Western Australia (REIWA) showed 5,082 active listings in Perth at the end of March, marking a 4.8 per cent increase from the end of February and a 41.5 per cent growth compared to one year ago.
REIWA president Suzanne Brown said the slow growth in population in the state had eased the demand for property and increased the number of active listings.
“It’s fallen from the peak of 3.4 per cent in the year to September 2023 to 2.5 per cent in the year to September 2024,” Brown explained.
While Brown noted that REIWA’s latest market data is lagged, the findings suggest that the rate of growth in the Perth market has continued to slow from the highs of late last year.
“There is still strong demand for property, but not at the levels it was a year ago,” Brown said.
“As a result, the frenzied conditions of early 2024, when properties were selling in a median of nine days and there were less than 3,600 listings on the market, have eased,” she explained.
Following the surge of new listings in Perth during October and November last year, Brown said properties have consistently come to the market.
She further noted that the increased amount of properties available on the Western Australian market has seen buyers take more time in the purchasing process and contributed towards a decline in the price growth.
“Coupled with the slight change in demand, this is seeing properties take longer to sell, active listings rise, and price growth slow,” Brown said.
Perth sale prices remain strong
Despite the deceleration in annual growth, Perth’s median house sale price rose by 1.2 per cent in March to $766,500, which was 20.7 per cent higher than March 2024.
The median unit sale price also increased by 1.2 per cent over the month and 20 per cent year-on-year to $516,000.
Houses in Perth sold in a median of 13 days in March, unchanged from February but four days slower than one year prior.
Although units in Perth also sold in a median of 13 days in March, this registered as one day slower than February and two days slower than March 2024.
Even with the pace of price growth in Perth slightly lagging over the recent months, Brown said that the state’s property market is still forecast to remain strong.
“While there has been a change in the market and the rate of price growth is slowing, relatively strong demand is still putting upward pressure on property prices and this is not expected to change in the short term,” Brown said.
The three suburbs which saw the most median house sale price growth in March were Fremantle (up 3.5 per cent to $1,345,000), Yokine (up 3.3 per cent to $1,017,000), and Kensington (up 2.9 per cent to $1,325,000).
Nevertheless, Brown noted that conditions still vary across the Perth market and encouraged buyers and sellers alike to be aware of the conditions of their local area.
Lag in rental growth set to continue
Perth’s median dwelling rent rose 0.7 per cent to $680 in March of this year, marking a growth of 4.8 per cent from last year.
The median weekly rent for houses increased to $690, which was 1.5 per cent higher month-on-month and 6.2 per cent higher than March of 2024.
While the median rent for units remained stable at $650 per week, this still registered 8.3 per cent higher than a year ago.
The institute’s finding showed that 2,126 properties were available for rent at the end of March, which was 5.4 per cent higher month-on-month and 14.9 per cent higher than the same time last year.
Homes in Perth leased in a median of 15 days during March, which was unchanged from February and 12 months ago.
Although Brown said there were minor movement in rent prices in March, she said the annual price growth has declined significantly.
“With population growth slowing, marginally easing the demand for rental property, we can expect this to continue,” she said.
Brown also reminded agents and investors that market conditions for rental properties can vary drastically from suburb to suburb.
“Competition for properties in some suburbs is still high and these areas continue to record moderate rent price growth. Other areas have seen their median weekly rent price decline over the year,” she concluded.
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