Despite Perth property prices officially falling in August, 56 suburbs were able to buck the trend.
The latest data from CoreLogic shows that Perth property prices fell 0.2 per cent in August, finally joining the other capital city markets around the country with softening prices.
Real Estate Institute of Western Australia President Damian Collins said a minor dip in the home value index was always a possibility given the interest rate environment, but that Perth was holding up very well overall – particularly in comparison to other capital cities around the country.
“We anticipate there will be fluctuations month-to-month in the overall Perth figure as buyers adjust to interest rates rising, however, Western Australia’s strong economy, growing population and housing shortage point to the current growth cycle continuing,” Mr Collins said.
“At a suburb level, reiwa.com data reflects feedback from REIWA agents who continue to report fierce competition for properties and good outcomes for sellers on the ground.
“This is evidenced by the 56 suburbs that saw median house sale price growth during the month.”
The five suburbs to record the biggest increase in price during August were Maida Vale (up 3.1 per cent to $593,750), Cooloongup (up 2.6 per cent to $370,000), Hillarys (up 2.5 per cent to $1.005 million), Southern River (up 2.2 per cent to $625,000) and Orelia (up 1.9 per cent to $327,500).
Other suburbs to perform well for median house sale price growth were Stirling, Seville Grove, Woodvale, Yanchep and Girrawheen.
Across the state, there were 8391 properties for sale at the end of August according to REIWA, which is 1.8 per cent lower than July.
“The housing shortage that has gripped the state for the last couple of years continues to affect the residential sales market and is a key factor behind the strong competition buyers are experiencing,” Mr Collins said.
Mr Collins said Perth was still seeing properties sell well with the average time on market at 17 days during August.
“Properties are still selling very quickly across the Perth region, which is not surprising given listings for sale are still low,” he said.
“Buyers need to act quickly and present a competitive offer in order to secure a property.”
According to REIWA, the fastest-selling suburbs in August were Orelia (six days), Greenfields (seven days), Merriwa (seven days), Parmelia (seven days) and Cooloongup (eight days).
Meanwhile, renters across Perth continued to be stretched as median rents trend higher.
Perth’s median rent was $480 per week during August, which is $10 more per week than July.
“Rents will continue to rise in Perth while there is a rental shortage,” Mr Collins said.
“We urgently need more investors in the market to help provide housing and ensure we keep rents affordable.”
Available rental stock fell 15 per cent in August, with just 1907 properties currently listed for rent.
“The fact is there are not enough available rentals in Perth to keep up with demand,” Mr Collins said.
“This is creating an extremely competitive and challenging rental environment for tenants.
“Unfortunately, this situation will only worsen if major changes are made to WA’s residential tenancy laws that would remove an owner’s right to make decisions about their property.
“We need to focus on addressing the rental shortage and housing supply issues, not introducing legislation that would further discourage investors from buying in WA.”
