Perth was one of the hottest property markets last year, with the top-performing suburbs seeing growth of more than 30 per cent.
According to the Real Estate Institute of Western Australia (REIWA), Bullsbrook recorded the highest growth for houses, with its median house sale price increasing 33.3 per cent to $530,000.
While Shelley, Midvale, Kenwick, Cooloongup, Armadale, Woodbridge, Parmelia, Camillo and Swan View all saw growth of more than 20 per cent.
REIWA Chief Executive Officer Cath Hart said while the Perth market had weathered the ongoing interest rate rises in 2023, affordability was still a focus for buyers.
“Last year was a record-breaking year for the market, with the median house sale price reaching a new high of $590,000,” Ms Hart said.
“Shelley and Woodbridge are the only suburbs on the list with a median house sale price above the Perth median, and Shelley is the only suburb with a median house sale price over $1 million.
“The remaining eight suburbs all have median house sale prices below $530,000, with Armadale the most affordable at $380,000.
“Rising interest rates and reduced borrowing capacity over the past year have driven interest in the lower-priced suburbs and competition for homes in these areas has seen them record extremely strong price growth.”
In the unit market, West Leederville was the top performer, with its median sale price rising 31.6 per cent to $500,000.
Erskine also recorded growth of more than 30 per cent.
“Unit prices have been much slower to respond to market conditions than houses, with many buyers preferring a house to a unit,” Ms Hart said.
“However, our members are reporting the overall demand for property, and particularly the strong motivation to exit the challenging rental market, is seeing greater demand for units.
“Units are generally more affordable than houses, which helps people put a foot on the property ladder in a rising market.
“This is helping drive price growth.”
Ms Hart said 2023 saw houses sell incredibly quickly, with a new monthly record of a median eight days on market set in October and November.
“Affordability also came to the fore in the fastest selling list, with all ten suburbs recording a median house sale price below $500,000,” she said.
“We saw this trend emerge towards the end of 2022 and it’s carried through into 2023.
“Buyers are clearly acting quickly when they see value.
“And while there has been a lot of discussion about Eastern States buyers snapping up bargains in some Perth suburbs, local buyers were also extremely active.”
The fastest selling suburb for houses was Leda, where homes sold in a median of four days.
Nollamara was the fastest selling suburb for units, with a median eight days on market for 2023.
“Over 2023 we saw the median time on market for units decreased significantly, also reflecting the growing demand for units,” Ms Hart said.
Overall, there were 53,895 settled sales in Perth across houses, units and land, which was 3.3 per cent lower than 2022 and the gap will close as more properties settle in the next few months.
While the number of sales declined slightly, the total value of sales was $34,847,370,352, which is 1.7 per cent higher than 2022.