Perth property prices have been able to buck the national trend and record a rise in values last month.
According to CoreLogic, Perth’s home value index increased 0.2 per cent in July, while values across Australia fell 1.3 per cent.
Real Estate Institute of WA President Damian Collins said the Perth market was still holding up well despite headwinds on a national level.
“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.”
Mr Colllins said WA is experiencing a housing and labour shortage simultaneously, which will continue to put upward pressure on home prices.
Sixty-five suburbs across the Perth region recorded median house sale price growth during July, led by 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 3 per cent to $865,500).
Other suburbs to perform well were Gosnells, Hammond Park, Southern River, Kelmscott and Langford.
“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.
According to REIWA, there were 8592 properties for sale 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.
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.
The fastest-selling suburbs in July were East Cannington (four days), Parmelia (five days), Orelia (five days), Erskine (six days) and Padbury (six days), while Stratton, Scarborough, Greenfields, Merriwa and Cooloongup all sold quickly.
Perth’s median rent increased $5 per week in July to $475 per week and Mr Collins expects that to continue to increase.
“Rent prices experienced a slight increase in July following a stable month in June,” he said.
“We expect rents will continue to grow throughout the second half of the year due to strong competition amongst tenants to secure a rental.”
According to REIWA, there were 2277 properties for rent at the end of July, which is stable compared to June and 14.7 per cent lower than July 2021.
Mr Collins said it’s still difficult to find affordable rentals across Perth.
“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,” he 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.”