INDUSTRY NEWSNEWSWA

Perth prices rise as the market outperforms Sydney and Melbourne

Home prices across Perth have continued to rise, increasing 0.6 per cent in May according to new data from CoreLogic.

Prices across Perth have climbed 3.6 per cent this year, with a small return to growth following the opening of the state’s borders in March.

Real Estate Institute of Western Australia (REIWA) President Damian Collins said market conditions in Perth had been strong and outperformed Sydney and Melbourne this year.

“May was another solid month of growth for the Perth property market, which is an encouraging sign that the recent increase to the cash rate has not stifled demand,” Mr Collins said.

“Based on what we’ve seen so far this year, Perth is on track to achieve REIWA’s forecasted 10 per cent price growth by the end of the year.”

Perth’s median house sale price rose to $525,000 during May, with reiwa.com data showing prices rose in 64 Perth suburbs.

“Price growth is widespread across Perth, with REIWA agents from Mandurah to Joondalup reporting strong market conditions,” Mr Collins said.

Despite the rising prices, Perth has the most affordable median house sale price of any capital city in the country.

The suburbs to record the biggest increase in median house sale price during May were North Perth (up 4.5 per cent to $1.1 million), Wembley Downs (up 2.7 per cent to $1.31 million), Langford (up 2.6 per cent to $380,000), Wilson (up 2.5 per cent to $610,000) and Bedford (up 2.3 per cent to $750,000).

Other suburbs to perform well included Meadow Springs, Yanchep, Brabham, Kardinya and Attadale.

The solid prices has seen seller confidence grow, with listings on the rise.

There were 8519 properties for sale on reiwa.com at the end of May, which is six per cent higher than April and 11 per cent lower than the end of May 2021.

“We saw a notable increase in listings for sale during May, which is pleasing, however stock levels remain well below the 12,000 to 13,000 figure that we’d expect to see in a balanced market,” Mr Collins said.

The time it takes to sell a property in Perth remained steady at 13 days in May, which was one day faster than in May 2021.

“Properties continue to sell fast,” Mr Collins said.

“Perth is firmly in a seller’s market and buyers need to ensure they act quickly and present their best offers first to avoid missing out.”

The fastest-selling suburbs in May were Cooloongup (six days), Bedford (seven days), Heathridge (seven days), Melville (seven days) and Waikiki (seven days).

Other suburbs to record fast median selling times were Woodvale, Kingsley, Piara Waters, Butler and Camillo.

Rental conditions also remained tight across Perth, with the city’s median rent rising $10 to $470 per week during May.

“This is the second month in a row that the median rent price has increased,” Mr Collins said.

“While market conditions are challenging for tenants, we continue to have the most affordable rental environment in the country.”

The suburbs to record the biggest jump in median rent during May were Como (up $40 to $545 per week), Butler (up $15 to $420 per week), Dianella (up $15 to $465 per week), Secret Harbour (up $15 to $475 per week) and Armadale (up $10 to $350 per week).

Other suburbs to record notable increases were Midland, Girrawheen, Waikiki, Thornlie and Belmont.

It took a median of 16 days to lease a rental in May, which was the same as April and two days faster than May 2021.

There were 2322 properties for rent at the end of May, which is seven per cent less than at the end of April and 18 per cent less than a year ago.

“The rental shortage will not go away without a significant uplift in private investment,” Mr Collins said.

“We need to ensure property investment is encouraged in Western Australia so that there are enough available rentals to keep up with tenant demand.”

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Rowan Crosby

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