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Perth home values continue to climb in first half of 2021

Perth home values increased seven per cent in the first half of 2021, according to the Real Estate Institute of Western Australia (REIWA).

REIWA President Damian Collins noted while the Perth home value index for June had only increased 0.2 per cent, the cumulative growth over the first six months of the year had been substantial.

“Although the June price growth rate is the smallest we have experienced this year, it has still been a positive year and brings the year-to-date total growth tally to seven per cent,” he said.

“Furthermore, in the past financial year, home values have increased almost 11 per cent in Perth.

“The smaller growth rate recorded in June is also not surprising given we have entered the traditional winter slowdown. In fact, it’s encouraging that even as the colder weather has descended upon us and activity has eased slightly, we are still seeing price growth.

“This will hold Perth in good stead as we transition out of winter and into the spring selling season in the coming months.”

Median house price in Perth

Perth’s median house sale price for June was $510,000, according to REIWA data.

“Whilst overall growth rate figures are important for understanding market trends, they don’t tell you the whole story. It’s very pleasing that when we drill down to suburb level, 84 suburbs recorded significant median house sale price growth during the month,” Mr Collins said.

REIWA data indicates the suburbs to record the biggest increase in median sale price during June were Parkwood (up 4.8 per cent to $450,000), Booragoon (up 4.1 per cent to $825,000), Merriwa (up 3.9 per cent to $335,000), Quinns Rock (up 3.9 per cent to $499,000) and Joondalup (up 3.2 per cent to $525,500).

Other suburbs to perform well were Subiaco, Kalamunda, Tapping, Nedlands and Wanneroo.

Listings for sale

There were 8933 properties listed for sale on reiwa.com at the end of June, which is one per cent less than at the end of May.

“We saw a small decline in listings at the end of June compared to May, but compared to three months ago, listings for sale have increased 8.1 per cent. On an annual basis, stock levels remain 13.4 per cent lower than they were at the end of June 2020,” Mr Collins said.

Median selling days in Perth

It took a median of 15 days to sell a home in June, which is one day slower than it took in May.

“Despite the minor increase in median selling times, the figure for June is still close to the lowest we have seen in the past 15 years,” Mr Collins said.

REIWA indicates the suburbs to record the fastest median selling times in June were Kingsley (seven days), Wembley, Brabham, Craigie, Greenwood, Heathridge, Kinross, Palmyra, Willetton (all eight days) and Parkwood (nine days).

“While the Perth sales market slowed slightly in June, it is still performing well and competition amongst buyers remains high. REIWA anticipates the Perth market recovery will continue throughout the second half of 2021 and into 2022,” Mr Collins said.

Median rent price in Perth

Perth’s median rent price for June was $425 per week, which is $5 more than it was in May.

“Western Australia remains the most affordable place in the country to rent in. Despite the small increase recorded to the Perth median rent during the month, it is still $25 cheaper than it was in 2013 and 2014, when it peaked at $450 per week,” Mr Collins said.

Median leasing times in Perth

It took a median of 19 days to lease a rental during June, which was one day slower than May, but eight days faster than June 2020.

The suburbs to record the fastest leasing times during June were Yanchep (11 days), Balga (13 days), Maddington (13 days), Innaloo (14 days) and Success (14 days).

Other suburbs to perform well were Thornlie, Wellard, Golden Bay, Beckenham and Brabham.

Listings for rent

There were 2818 properties for rent at the end of June on reiwa.com, which is stable compared to last month and 5.7 per cent higher than three months ago.

REIWA’s data shows the suburbs to record the biggest growth in rental listings during the month were Shelley, Piara Waters, Kardinya, Hamilton Hill, Coolbellup, Osborne Park, Dianella, Leederville, Nedlands and Secret Harbour.

“The listing figures for June are encouraging. While we are by no means out of the woods, it’s pleasing that stock levels have started to stabilise and on a three-month basis are improving,” Mr Collins said.

“The Perth vacancy rate is currently at one per cent. We’d like to see that lift to around two to three per cent to restore balance in the market. With investor finance levels starting to rise, we should hopefully see more properties come to market in the second half of the year.

“It is imperative that investors remain an active part of the WA market so there are enough rentals to keep up with tenant demand. The outcome of the Residential Tenancies Act review, which is currently underway, needs to be fair for all parties and ensure investors aren’t disincentivised from buying in WA.”

COVID-19 impact

“The latest COVID-19 outbreak and subsequent lockdown are concerning, but as was the case in February and April, there should be minimal short-term impact on the real estate market provided Perth can get on top of this outbreak quickly,” Mr Collins said.

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