Strong demand for property in Perth has seen the median house price hit a record high of $585,000 in November, according to new data.
The Real Estate Institute of Western Australia (REIWA) Chief Executive Officer Cath Hart said houses were changing hands in record time.
“Demand shows no signs of slowing,” Ms Hart said.
“This is maintaining upward pressure on house prices, which have risen 8.2 per cent in the last 12 months.
“The underlying trends show more increases are on the horizon.”
Unit prices also rose to $405,000, up from $400,000 at the end of October, with more positive signs ahead.
“There are several factors behind the ongoing strength of the Perth property market,” Ms Hart said.
She said WA’s population increased 2.8 per cent in the year to March, which is driving demand for homes and rentals.
“The ongoing challenges in the rental market are seeing people look to buy if they can,” she said.
“And the constraints in the building industry are also seeing people turn to the established homes market.
“While there was a huge spike in building approvals during 2020, following the Covid building incentives, there hasn’t been a corresponding spike in completions.
Ms Hart said completions had averaged 14,000 for each of the past three financial years, and many people had waited years for their new home to be finished.
“People considering building are looking to buy instead,” she said.
“We don’t see the strong focus on the established homes market changing in the near future, so more price rises are extremely likely.”
According to REIWA, the suburbs with the most growth in November were Claremont (up 4.8 per cent to $1.98 million), Swan View (up 3.7 per cent to $503,000), North Perth (up 3.6 per cent to $1.16 million), Dudley Park (up 3 per cent to $515,000) and Southern River (up 2.9 per cent to $700,000).
Armadale, Hammond Park, City Beach, Coodanup and Quinns Rocks also recorded growth of more than 2 per cent.
Houses sold in just eight days in November, which was the same as October.
The fastest selling suburbs were Beechboro, Brabham, Greenfields, Seville Grove and Warnbro, which all recorded a median time on market of four days.
Butler, Camillo, Clarkson, Cooloongup and Dudley Park recorded a median of five days.
All of these suburbs had median house prices below the overall Perth median, highlighting the demand for affordable homes.
Units also sold extremely quickly, recording a median time on market of 12 days.
Overall there were 4738 listings at the end of November, below the record low seen at the end of September and 43.9 per cent lower than a year ago.
“New listings are still coming to the market,” Ms Hart said.
“We have seen the traditional Spring boost, with new listings in November 25.7 per cent higher than September, but homes are selling incredibly quickly and this is keeping the listings that you see on reiwa.com consistently low.”
At the same time, Perth’s median dwelling rent price rose to a new record of $600 per week in November – a 1.7 per cent increase on October and 20 per cent higher than the same time last year.
The median weekly rent for houses rose to $610, a 15.1 per cent increase from November 2022, while units remained stable at $550, which was a 17 per cent rise on a year ago.
According to REIWA, the suburbs that saw the most growth in their median weekly rent price in November were Inglewood (up 35 per cent to $675), Joondanna (up 33 per cent to $720), Como (up 23 per cent to $690), Orelia (up 22 per cent to $513), and Leeming (up 21 per cent to $800).
“The reality is that we can expect more increases over the coming months,” Ms Hart said.
“We are not seeing an increase in underlying rental supply, but there is strong demand, which is maintaining upward pressure on prices.”
She said there might be a slight moderation in rent prices as tenants find ways to cope with low supply and rising prices.
“Demand may fall slightly if we see a greater increase in tenant household sizes, more people electing to buy – although this has challenges of its own – or people simply choosing to stay in the family home longer or moving back in with their parents to avoid the rental market,” she said.
Overall, there were 1,948 properties available for rent at the end of November, a 12.3 per cent increase on October and 5.1 per cent higher than a year ago.
It took a median of 14 days to lease a rental during November, unchanged from October and 12 months ago.
The suburbs recording the fastest median leasing times were Leeming (six days) Bentley and Leederville (nine days) and East Victoria Park, Hillarys, Scarborough, Applecross, Balcatta, Cannington and East Cannington (10 days).
