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Newly released data has shown Perth’s housing and rental markets have sustained their price growth momentum while still remaining affordable for buyers and tenants.
Real Estate Institute of Western Australia (REIWA) president Damian Collins has announced that the Perth property market “was on track for another solid year of price growth”, having gained 0.3 per cent in home values over February.
Housing market
Compared to Sydney and Melbourne, where house prices sit above $1 million, Perth’s median house sale price of $525,000 in February stands out as the most affordable among the capital cities in Australia.
“We are lucky that owning your own home is still attainable for most people in Perth,” said Mr Collins.
Mount Nasura saw the biggest boost, with the February median sale price increasing by 3.1 per cent to $490,000.
This was followed by Nedlands with an increase of 2.4 per cent to $2.1 million, Meadow Springs up 2 per cent to $430,000, Hammond Park up 1.9 per cent to $525,000, and Hamersley up 1.8 per cent to $565,000.
REIWA has also noted significant price growth across Dawesville, Ocean Reef, Cooloongup, Coolbellup and East Victoria Park.
The 7,892 properties listed on REIWA’s website at the end of February was on par with their January listing volumes but 13 per cent less than volumes at the end of November 2021.
Mr Collins believes that “with interstate and overseas migration expected to increase considerably once borders open”, there will be even more downward pressure on listing stock due to intensified competition amongst buyers.
Furthermore, REIWA has reported the 16 days median time to sell in February this year is three days faster than the same time last year and on par with January data.
Topping the list of fastest-selling suburbs was Tapping (six days), followed by Coolbellup, Cooloongup, Greenwood and Harrisdale, which all reported a seven-day time on market.
Carramar, Currambine, Bayswater, Atwell and Craigie are the other suburbs worth noting for record median selling times, according to REIWA.
Rental market
REIWA data indicated a stable median rent price of $450 per week in February and marked the third consecutive month at this price.
“It should reassure tenants that even though demand for rentals is strong, rent prices are not growing at unsustainable levels,” stated Mr Collins.
Yokine saw the greatest median rent rise during February, with an increase of $15 to $475 per week.
This was followed by Rockingham with a $10 increase to $390 per week, Scarborough up $15 to $595 per week, Ellenbrook up $10 to $420 per week, and Yanchep up $10 to $450 per week.
Other suburbs worth noting for strong increases, based on REIWA data, are Aveley, Balga, Piara Waters, Doubleview and Duncraig.
Looking at REIWA’s median leasing time data in Perth, it took an average of 16 days to lease a rental during February, which was on par with January figures but three days faster than February 2021.
Among the suburbs, Yanchep was reported to have the fastest median leasing time in February at just 12 days.
This was followed by Alkimos, Meadow Springs, Yokine – all at 13 days, and Byford at 14 days.
Other suburbs worth noting for fast median leasing times were Como, Maylands, Nedlands, Duncraig and Queens Park.
At the end of February, there were 2,319 properties listed for rent on REIWA’s website, which was on par with rental listing volumes in January.
Alongside the anticipated increase in demand for sales listing, the REIWA president is also expecting a sharp increase in rental demand – also due to interstate and overseas arrivals.
“This will exacerbate the rental shortage in the short term but is a necessary step towards increasing investment in the state, attracting skilled workers to help complete construction and bringing balance back to the market,” he said.
To conclude, Mr Collins stated: “REIWA members across Perth are reporting strong market conditions. We don’t anticipate the demand for property changing any time soon, especially with borders set to open this week.”
ABOUT THE AUTHOR
Noemi Paminuan-Jara
Noemi is a journalist for Smart Property Investment and Real Estate Business. She has extensive experience writing for business, health, and education industries. Noemi is a contributing author of an abstract published by the American Public Health Association, and Best Practices in Emergency Pedagogical Methods in Germany. She shares ownership of the copyright of an instructional video for pharmacists when communicating with deaf patients. She attended De La Salle University where she obtained a double degree in Psychology and Marketing Management.
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