The number of houses on the market has jumped across Perth as sellers take advantage of Perth’s strong market conditions.
The latest data from REIWA shows 119 suburbs saw increased listings in October. Overall, 5838 new listings came to market last month, representing a three per cent jump from September and the highest level since May 2021.
Perth property prices have remained strong throughout the year, with values up by 16.37 per cent over the past 12 months.
REIWA President Damian Collins said both buyers and sellers were keen to make the most of the Spring selling season and the good conditions.
“Spring 2021 has so far continued the trend we’re used to seeing this time of year, as an increasing number of owners choose to list their property for sale,” he said.
“The increase in listings during October is not because properties are languishing on the market, but because buyer demand is high and sellers are taking advantage of the favourable market conditions.”
The suburbs recording the biggest total increases were Darch, Hillarys, Sorrento and Inglewood.
“These four suburbs were particular standouts, with listings for sale increasing by 100 per cent or more in each area when comparing October to September,” Mr Collins said.
House price growth
Mr Collins says the last 12 months have been strong for Perth property prices.
“Whilst price growth was relatively subdued during October, on an annual basis Perth home values are up 16.37 per cent,” Mr Collins said.
REIWA data shows Perth’s median house sale price was $520,000 in October, with 65 suburbs recording price growth during the month.
The suburbs that experienced the biggest house price growth during October were Cottesloe (up 4.6 per cent to $2.6 million), Doubleview (up 2.8 per cent to $795,000), Sorrento (up 2.8 per cent to $1.15 million), Joondalup (up 2.8 per cent to $545,000) and Brabham (up 2.6 per cent to $427,500).
Quick to sell
The median time to sell a house during October was 16 days, one day faster than in September and nine days faster than October 2020.
“Buyers are still having to act very quickly to secure a property in Perth,” Mr Collins said.
REIWA data shows the five fastest-selling suburbs in October were Heathridge (six days), North Perth (six days), Willagee (six days), Bull Creek (seven days) and Kingsley (seven days).
Rental prices remain steady
After a sharp jump in rental prices over the past 12 months, Perth’s median rent price was stable in October, holding at $430 per week.
“In the last three months, we’ve only seen a $5 increase in rents in Perth, which is quite remarkable considering the vacancy rate remains low and competition amongst tenants to secure a rental is still high,” Mr Collins said.
It took a median of 17 days to lease a rental during October, one day faster than September and one day faster than October 2020.
The suburbs to record the fastest leasing times during October were Wellard (10 days), Byford (13 days), Kelmscott (13 days), Yokine (13 days) and Doubleview (13 days).
Rental shortages
With 2146 properties for rent on reiwa.com at the end of October, Mr Collins said he believed there was still a rental shortage.
“The biggest issue facing the Perth rental market is not affordability, but a shortage of rental stock,” Mr Collins said.
“Western Australian needs to see an influx of investors to ensure there is an adequate supply of rental stock to keep up with tenant demand.”
“With the WA borders set to open next year, demand for rentals will likely increase. It is imperative that investors are not further deterred from providing rentals in WA and that the outcome of the Residential Tenancies Act review is fair for all parties.”
