Perth’s wet weather hasn’t dampened buyers’ interest, according to the Real Estate Institute of Western Australia (REIWA).
REIWA data revealed listings for sale in Perth dropped 2.3 per cent in July and are down 6.4 per cent compared to April 2021.
REIWA President Damian Collins said it is pleasing that stock is being sold quickly, despite the very wet weather Perth has been experiencing.
“Normally wet weather dampens people’s interest in attending property inspections, but July was still a very strong month for sales,” Mr Collins said.
“As we transition out of winter into spring, this should put the Perth property market in a good position to continue its strong recovery.”
Listings for sale
There were 8374 listings for sale at the end of July, according to REIWA.
“Much of this decline is being driven by houses, with house listings down 6.2 per cent over the month and 11.9 per cent compared to three months ago,” Mr Collins said.
The suburbs to record the biggest decreases in listings in July were Banksia Grove (down 44 per cent), Lockridge (down 37 per cent), Darlington (down 33 per cent), Glendalough (down 33 per cent) and Helena Valley (down 33 per cent).
“It is encouraging to see stock still being absorbed at a healthy pace during winter when we’d generally expect fewer sales to occur,” Mr Collins said.
Home value index and median sale price
CoreLogic data shows the Perth home value index lifted 0.3 per cent in July and is up almost 11 per cent over the last 12 months.
“Even though the rate of growth has slowed down, it is reassuring to see there has still been price growth, which will put Perth in a strong position as we enter the spring selling season,” Mr Collins said.
REIWA data indicated the Perth median house sale price in July was $520,500.
The suburb to record the biggest increase in median house sale price during July was Spearwood (up 3.3 per cent to $485,000).
It was followed by Kingsley (up 3.1 per cent to $620,000), Leda (up 2.9 per cent to $300,500), Success (up 2.8 per cent to $521,000) and Greenfields (up 2.8 per cent to $297,500).
“It’s pleasing to see representation from the more affordable end of the market in the top performing price growth suburbs. The Perth market recovery is widespread and occurring across all price points,” Mr Collins said.
Median selling days
REIWA data showed the median time to sell a property was 17 days in July.
“Even though this figure is one day slower than June, houses are still selling 27 days faster than they were a year ago,” Mr Collins said.
The fastest selling suburbs in July were Kingsley (six days), Willetton (seven days), Heathridge (eight days), Kinross (eight days) and Palmyra (eight days).
These were followed by Waikiki (nine days), Greenwood (10 days), Leeming (10 days), Hocking (10 days) and North Perth (10 days).
Perth rental market
Perth’s median rent price was stable in July, holding at $425 per week.
“Although the Perth median rent price has increased over the last year, we are still $25 cheaper than the peak median rent price of $450 per week in 2013 and 2014,” Mr Collins said.
“It’s reassuring for tenants that the rate of growth has slowed since the end of the rental moratorium.”
Leasing activity
Leasing activity increased 0.3 per cent in July and is up 7.1 per cent compared to April.
Victoria Park saw the biggest increase in leased properties, with activity up 71 per cent in July compared to June.
Other suburbs to perform well were Maylands (up 63 per cent), Piara Waters (up 50 per cent), Balga (up 50 per cent), Dianella (up 40 per cent) and Southern River (up 38 per cent).
Listings for rent
There were 2734 properties for rent in Perth at the end of July, according to REIWA’s data.
“Listings for rent have increased 13 per cent since the height of the rental shortage in December 2020. Although there is still a rental shortage, this is an encouraging trend that needs to continue to achieve a balanced market,” Mr Collins said.
The five suburbs to record the biggest increase in rental listings during July were Bayswater, Mount Hawthorn, Halls Head, Ascot and Bassendean.
“The increase in listings since January reinforces that investor confidence is slowly starting to return,” Mr Collins said.
Mr Collins noted this was also backed up by Australian Bureau of Statistics data which shows investor loan approvals in Western Australia increased to $498 million in May 2021. That is 10 per cent more than April 2021 and 209 per cent more than May 2020.
“We still have some way to go before we get back to a balanced market, but the early signs are good,” he said.
“It is vital that the review of the Residential Tenancies Act (RTA) does not derail this progress by discouraging investor activity. Now is not the time to be making significant changes to the RTA.”
