Perth sales volumes hit a 12-year high last month and the market shows no sign of slowing down, according to experts.
Real Estate Institute of Western Australia (REIWA) figures showed members reported an average of 1078 transactions a week during March – levels not seen since March 2010.
REIWA President Damian Collins said the Perth market was showing no signs of slowing down.
“The appetite for property is strong in Perth. If this sales trajectory continues, we are very likely to see another solid year of price growth,” he said.
The suburbs that recorded the biggest increase in sales last month were Joondalup, Banksia Grove, Merriwa, Treeby, Southern River, Beckenham, Wannanup, Nollamara, Iluka and Yangebup.
CoreLogic’s Perth home values index increased 1 per cent in March, bringing total growth for the first three months of the year to 1.9 per cent.
Data from REIWA showed Perth’s median house sale price sat at $525,000 last month, which is the most affordable of Australia’s capital cities.
“Perth is firmly on track to achieve the 10 per cent price growth forecast by REIWA last year,” Mr Collins said.
“Even with interest rates tipped to increase later this year, WA is in a very good position. We have the most affordable housing in the country and one of the strongest economies in the world.”
The median house sale price climbed the most in East Fremantle (up 4.8 per cent to $1.376 million), followed by Mount Hawthorn (up 4.3 per cent to $1.16 million), Treeby (up 3.8 per cent to $577,000), East Victoria Park (up 2.8 per cent to $705,000), and Waikiki (up 2.6 per cent to $390,000).
Mr Collins said while listings on reiwa.com rose 2 per cent to 7796 at the end of March, listings were still 6 per cent down on the same time last year.
“We saw a slight increase in for sale stock over the month, but listings remain very low – especially when compared to historical averages,” Mr Collins said.
The median time to sell a house during March was 15 days, which was one day faster than in February.
The fastest selling Perth suburbs were Merriwa and Woodvale at six days, and Tapping, Carramar and Currambine at seven days.
“Properties are still selling very quickly in Perth, with buyers needing to act quickly and competitively in order to secure the property,” Mr Collins said.
In the rental market the number of listings on reiwa.com rose 9 per cent in March to 2364, with the median rent price holding at $450 per week for the fourth consecutive month.
“It is quite remarkable that the median rent price has been unchanged since December given how fierce competition for rentals is,” Mr Collins said.
“While it’s pleasing listings for rent increased during the month, we are still a long way off rectifying the rental shortage.
“We need to entice investors back to the WA market to help house tenants and keep our rental market affordable.”
But that doesn’t mean rent rates have remained steady in every suburb.
The suburbs to record the biggest increase in median rent during March were Applecross, up $90 to $740 per week and Canning Vale, up $20 to $520 per week.
Median leasing times remained the same as in February at 16 days, with Wellard coming in with the fastest median leasing time at 10 days.