Up 20% in the past year, Perth house prices show no signs of slowing

The median unit sale price also hit a new record by rising 1.1 per cent over the month to $455,000, marking a 13.8 per cent increase year-on-year.

Speaking on these findings, REIWA CEO Cath Hart shared that the market is “experiencing extraordinary conditions, with no signs of easing in the short term”.

“At the moment there is clearly the appetite for, and ability to, buy property and it will take a significant change in demand or supply to ease the pressure in the established homes market,” she said.

Hart further explained that the institute’s members are still reporting “strong numbers” at open homes and “continue to receive multiple offers over the asking price, with some offers well above it”.

REIWA’s data showed that the top performing suburbs for house price growth in August 2024 were Willetton (up 5.6 per cent to $1,125,000), Westminster (up 4.2 per cent to $565,000), Mindarie (up 4 per cent to $1,050,000), Thornlie (up 3.1 per cent to $630,000) and Armadale (up 2.7 per cent to $488,000).

The institute observed that houses and units sold in a median of nine days in August 2024, unchanged from the month prior but registering as one day faster than this time last year.

Over the month, the fastest selling suburbs for houses were Parmelia (three days); Clarkson, Rockingham, Spearwood, and Yangebup (five days); and Cooloongup, Thornlie, Atwell, Greenfields, and High Wycombe (six days).

Perth’s active listings settle to 3,499 at the end of August, marking a 9.4 per cent increase from July but declining 32.5 per cent from 12 months prior.

Weighing in on this development, Hart said that “strong demand and the speed of sales” have “continued to keep active listings low”.

Perth rental market

Perth’s rental market, meanwhile, has continued to moderate over August, with REIWA’s data showing that the median weekly rent for houses remained steady at $650 over the month.

The median weekly dwelling rent increased by 12.1 per cent from this time last year, while the median weekly house rent registered as 8.3 per cent higher.

The median weekly unit rent has dropped back to $600, which is 3.2 per cent lower than July, but this result still represents a 9.1 per cent increase year-on-year.

Commenting on these findings, Hart said “after several years of very strong price growth in rents”, the Perth market is “showing extended periods of stability”.

“The median dwelling and house rent prices have been stable for six months. The median unit price has also been at $600 per week for five of the past six months.”

“We’re seeing the annual growth rate for rent prices slow, dropping back from around 20 per cent earlier this year to single digit growth for units and houses,” she added.

Citing that the city’s market is currently in a “period of change”, Hart advised “investment property owners to discuss the conditions in their local market with their property manager when it comes time to review rents”.

“The rental market is still very tight, but the frenzied conditions of the past few years have eased. While there is often still strong interest at home opens, property managers are receiving fewer applications,” the CEO said.

With 2,182 properties available for rent at the end of August, the REIWA stated this was 12.8 per cent lower than July, but 33.6 per cent higher than the same time last year.

“August was the first month since February where leases outpaced new listings, which explains the decline,” said Hart.

The CEO also noted that “while available properties were down month-on-month, they are significantly higher year-on-year, which is positive”.

Rental properties were also being leased in a median of 19 days over August, one day slower than in July and four days slower than this time last year.

Beyond the longer lease times for properties in higher price brackets, Hart stated that the institution’s members are witnessing situations where “successful applicants are pulling out after they have been accepted for a property”.

Delving into this trend, Hart highlighted that reluctant applicants may be simply deciding the “property isn’t right for them” or could be applying for a new property when not sure if their current lease will be renewed and then withdrawing their application after being accepted for the new property.

“This means the property manager needs to find another tenant, which is affecting the time it takes to fill a vacancy.”

“Conditions do vary from suburb to suburb, and within price brackets, so I urge property owners to discuss local conditions with their property manager,” the CEO said.