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Home values in the Western Australian capital have seen a greater increase than in both Sydney and Melbourne since the start of the year.
CoreLogic’s latest Home Value Index highlighted that Perth property values were up 0.6 per cent in May and a total of 3.6 per cent since the beginning of the year.
Real Estate Institute of Western Australia (REIWA) president Damian Collins said May’s growth, which saw 64 Perth suburbs record price growth, is representative of the city’s strong start to 2022.
“May was another solid month of growth for the Perth property market, which is an encouraging sign that the recent increase to the cash rate has not stifled demand,” Mr Collins stated.
“Based on what we’ve seen so far this year, Perth is on track to achieve REIWA’s forecasted 10 per cent growth by the end of the year.”
Despite last month’s price growth resulting in the city’s median sale price hitting $525,000, Mr Collins was quick to assure it wouldn’t hinder its affordability.
“Price growth is widespread across Perth, with REIWA agents from Mandurah to Joondalup reporting strong market conditions. Despite the fact [that] prices are rising, Perth continues to have the most affordable median house sale price of any capital city in the country,” he said.
North Perth experienced a 4.5 per cent increase to its median sale price in May, followed by Wembley Downs (2.7 per cent) and Langford (2.6 per cent) as the city’s three highest growth suburbs.
Inventory levels also rose 6 per cent in May, with 8,519 properties listed for sale across May. However, Mr Collins does note this is still well below the levels required for a balanced market.
“We saw a notable increase in listings for sale during May, which is pleasing,” he said, “however stock levels remain well below the 12,000 to 13,000 figure that we’d expect to see in a balanced market”.
He also stated that with the median time on market remaining firm at 13 days, Perth continues to be a seller’s market.
“Properties continue to sell fast. Perth is firmly in a seller’s market and buyers need to ensure they act quickly and present their best offers first to avoid missing out,” Mr Collins said.
The considerable growth seen throughout Perth to start 2022 and particularly during the month of May come as CoreLogic reported the first drop in national dwelling prices in nearly a year and a half last month, with this drop driven by the performances of Canberra, Sydney and Melbourne in particular.
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