Perth defies national trend as house prices continue to rise
Sixty-five suburbs across the Perth region recorded median house sale price growth during July.
REIWA President Damian Collins said the Perth market was still tracking along well, with a significant number of suburbs recording price growth during the month.
“The Perth market typically slows in winter, so it’s pleasing that when we drill down to suburb level, a large number are still seeing growth – especially considering the three recent interest rate rises,” Mr Collins said.
The five suburbs to record the biggest increase in price during July were Brabham (up 10.1 per cent to $333,750), Alkimos (up 4.6 per cent to $371,250), Lakelands (up 4.1 per cent to $385,000), Banksia Grove (up to 3.7 per cent to $420,000) and North Perth (up three per cent to $865,500).
Other suburbs to perform well were Gosnells, Hammond Park, Southern River, Kelmscott and Langford.
CoreLogic home value index
CoreLogic’s Perth home value index increased 0.2 per cent in July.
“Perth is one of the few capital cities in the country that has seen continued growth in home values since the Reserve Bank of Australia made the decision to increase the cash rate,” Mr Collins said.
“Western Australia’s strong economy, growing population and affordable housing mean we are in a much better position to manage the increased costs of servicing a loan than our east-coast counterparts.
“We’re also experiencing a housing and labour shortage simultaneously. We have low stock levels and properties are not being built quick enough. For as long as this remains an issue, competition amongst buyers will remain high and prices will continue to rise.”
Listings for sale
There were 8,592 properties for sale on reiwa.com at the end of July, which is similar to last month.
“Listings volumes across Perth are very low and remain a key driver for why we expect Perth’s current growth cycle to continue," Mr Collins said.
Time on market
The median time to sell a house was 17 days during July, which is one day slower than June and two days faster than July 2021. “We’ve seen a slight increase in the number of days it takes to sell a home over the last couple of months. This figure for July is still significantly faster than the 30 to 40 days we would see in a balanced market,” Mr Collins said.
reiwa.com data shows the fastest-selling suburbs in July were East Cannington (four days), Parmelia (five days), Orelia (five days), Erskine (six days) and Padbury (six days).
Other suburbs to record fast median selling times were Stratton, Scarborough, Greenfields, Merriwa and Cooloongup.
Perth rental market
Median rent price
Perth’s median rent price was $475 per week during July, which is $5 more than June.
“Rent prices experienced a slight increase in July following a stable month in June. We expect rents will continue to grow throughout the second half of the year due to strong competition amongst tenants to secure a rental,” Mr Collins said.
Median leasing times
It took a median of 16 days to lease a rental during July, which was the same as June and four days faster than July 2021. The suburbs that recorded the fastest median leasing times were Dudley Park (eight days), Seville Grove (nine days), Piara Waters (11 days), Ellenbrook (11 days) and High Wycombe (11 days).
Other suburbs to record fast leasing times were Merriwa, Thornlie, Meadow Springs, Quinns Rock and Rivervale.
Listings for rent
There were 2,277 properties for rent on reiwa.com at the end of July, which is stable compared to June and 14.7 per cent lower than July 2021.
“The rental shortage remains a critical issue for the WA rental market, which is why it is essential that no major changes are made to our tenancy laws that would remove an owner’s rights to make decisions about their property,” Mr Collins said. “Sixty-one per cent of investors say they’ll sell their rental property if some of the key proposed changes are made. This is deeply concerning and would push the rental shortage into a rental crisis if adopted.”