House prices in more than 80 Perth suburbs jumped as much as 6.2 per cent in December, with property market experts tipping the trend to continue well into 2022.
CoreLogic’s Perth home value index climbed 0.4 per cent in the final month of 2021, with Real Estate Institute of Western Australia (REIWA) data recording the city’s median house sale price as $520,000.
For the calendar year, home values increased 13.1 per cent.
REIWA President Damian Collins said the rise in the home value index over the past 12 months was good news for Perth property owners.
“Last year saw a remarkable resurgence in the Perth property market, with low stock levels and strong buyer demand fuelling price growth,” Mr Collins said.
“We anticipate another healthy year of price growth ahead, driven by an increase in migration once borders open, which will sustain the demand for property in Perth.
“At a suburb level, December was another strong month, with 83 suburbs recording price growth.”
Applecross recorded the biggest jump in median house sales prices, up 6.2 per cent to $1.7 million.
This was followed by Kalamuna (up 4.9 per cent to $710,000), Wannanup (up 3.4 per cent to $585,000), Mandurah (up 3.2 per cent to $310,000) and Beckenham (up three per cent to $422,500).
Other suburbs that performed well included Cooloongup, Kardinya, East Victoria Park, Doubleview and Safety Bay.
The number of listings fell 7 per cent in December, with 8511 properties for sale on reiwa.com at the end of the month.
But this was still 4 per cent higher than at the same time in 2020.
“We saw a notable decline in listings for sale at the end of December compared to November, which is very typical for this time of year as sellers choose to defer listings over the holiday period,” Mr Collins said.
The time it took to sell a house remained the same from November to December at 14 days, which was seven days faster than in December 2020.
The fastest-selling suburbs in December were Kingsley (six days), Coolbellup (seven days), Floreat (seven days), Greenwood (seven days) and Heathridge (seven days).
“Properties are selling very fast in Perth, with buyers needing to act quickly and competitively to ensure they secure a property,” Mr Collins said.
Rent prices are also on the up, with Perth’s median rent price rising $5 to $445 per week in December.
Balcatta recorded the highest increase in median rent in December, rising $30 to $450 per week.
This was followed by Aubin Grove (up $30 to $480 per week), Rivervale (up $25 to $450 per week), Waikiki (up $20 to $400 per week) and Yanchep (up $20 to $420 per week).
The median leasing time for December stayed the same as the month prior, at 16 days, which was one day faster than December 2020.
Landlords looking for the suburb with the fastest median leasing time should look to Secret Harbour and Wellard (both 12 days), followed by Innaloo, Kelmscott and Hamilton Hill (all 13 days).
There were 1864 properties for rent on reiwa.com at the end of December.
“The rental shortage continues to be the biggest issue facing the Perth rental market,” Mr Collins said.
“We need more investors in the market to help keep up with tenant demand, which will only increase once borders open and migration resumes.
“It is critical that the WA Government does not make major changes to the Residential Tenancies Act that will discourage property investment in WA at a time when we desperately need an influx of rental stock.”