INDUSTRY NEWSNEWSWA

Perth house prices still the most affordable in the country

While house prices have been rapidly rising across the country, Perth values haven’t kept pace with the East Coast.

According to the latest data from Real Estate Institute of Western Australia, the median house price in Perth was $525,000 in February, making it still the most affordable capital city in Australia to buy a home.

REIWA President Damian Collins said the record housing boom had made the East Coast expensive for home buyers.

“Despite the strong market conditions, Perth still has the most affordable median house sale price of any capital city in the country,” Mr Collins said.

“In Sydney and Melbourne, their median house sale prices sit above $1 million, pushing the dream of home ownership out of reach for many people.

“We are lucky that owning your own home is still attainable for most people in Perth.”

The Perth property market continues to see steady growth, with CoreLogic reporting Perth home values increased 0.3 per cent during February.

Mr Collins expects house prices to continue to gain ground over the next 12 months.

“REIWA members across Perth are reporting strong market conditions,” he said.

“We don’t anticipate the demand for property changing any time soon, especially with borders set to open this week.”

According to REIWA, the WA suburbs to record the biggest median house sale price growth during February were Mount Nasura (up 3.1 per cent to $490,000), Nedlands (up 2.4 per cent to $2.1 million), Meadow Springs (up 2 per cent to $430,000), Hammond Park (up 1.9 per cent to $525,000) and Hamersley (up 1.8 per cent to $565,000).

While Dawesville, Ocean Reef, Cooloongup, Coolbellup and East Victoria Park all performed well.

There were 7,892 properties for sale on reiwa.com, which is at the same level as January and 13 per cent lower than the end of November 2021.

Mr Collins expects to see more interest in WA now that borders are set to reopen.

“With interstate and overseas migration expected to increase considerably once borders open, we anticipate competition amongst buyers will intensify which will put downward pressure on listing stock,” he said.

It took 16 days to sell a property in February, which is the same as January and three days faster than February 2021.

According to REIWA, the fastest-selling suburbs in February were Tapping (six days) and Coolbellup, Cooloongup, Greenwood and Harrisdale (all seven days).

After a strong 12 months for rental increases, prices have continued to stagnate over in 2022. Perth’s median rent price was $450 per week during February, which is stable compared to January.

“This is the third month in a row median rent prices have held at $450 per week,” Mr Collins said.

“It should reassure tenants that even though demand for rentals is strong, rent prices are not growing at unsustainable levels.”

The suburbs with the biggest increase in median rent during February were Yokine (up $15 to $475 per week), Rockingham (up $10 to $390 per week), Scarborough (up $15 to $595 per week), Ellenbrook (up $10 to $420 per week) and Yanchep (up $10 to $450 per week).

It took a median of 16 days to lease a rental during February, which was the same as January and three days faster than February 2021.

Yanchep (12 days), Alkimos (13 days), Meadow Springs (13 days), Yokine (13 days) and Byford (14 days) recorded the fastest median leasing time in February.

There were 2,319 properties for rent on reiwa.com at the end of February, which is same level as January.

“With borders opening this week we are likely to see increased competition for rentals from interstate and overseas arrivals who are competing with locals for accommodation,” Mr Collins said.

“This will exacerbate the rental shortage in the short term but is a necessary step towards increasing investment in the state, attracting skilled workers to help complete construction and bringing balance back to the market.”

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Rowan Crosby

Rowan Crosby is a freelance journalist specialising in finance and real estate.