Perth house prices reach new high

Perth’s median house sale price set a new record in March, rising 2.5 per cent to $620,000, according to REIWA.

The median unit sale price also rose over the month, increasing 1.2 per cent to $420,000.

REIWA CEO Cath Hart said the ongoing strong demand for homes continued to put upward pressure on prices.

“WA’s population continues to increase at a near record rates – up 3.3 per cent to over 2.9 million in the year to September, dwelling completions are well below what’s needed to house those additional households and as a result people are driven to the established homes market in order to put a roof over their heads,” Ms Hart said.

“This creates strong competition for homes, which in turn pushes up prices. We’ve seen house prices increase 12.7 per cent year-on-year, while unit prices are up 5.0 per cent.”

Ms Hart said while there was a lot of talk about Eastern States investors paying top-dollar for homes in WA, REIWA members were reporting it was usually local buyers who were willing to pay more for a home.

“Eastern States investors are certainly showing a lot of interest in WA at the moment, lured by our relatively affordable housing and the prospect of good yields, but these purchases are generally a financial decision for them. If the price becomes too high, they’ll look elsewhere,” she said.

“Local buyers are often more emotional. They may have a preference for a certain suburb or fall in love with a home and be willing to pay a premium price. This is particularly common if they plan to live in the home for a long time; they consider paying more worthwhile.”

The suburbs that saw the most house sale price growth in March 2024 were Yangebup (up 4 per cent to $644,500), Camillo (up 3.5 per cent to $445,000), Beeliar (up 3.4 per cent to$695,000), Mount Pleasant (up 3.3 per cent to $1,550,000) and Belmont (up 3.2 per cent to $590,000).

Ballajura, Scarborough, Inglewood, Palmyra and Secret Harbour were also among the top performers, recording growth of 2.8 per cent or more over the month.

Time on market

Houses sold in a median of eight days in March, unchanged from February and five days faster than March 2023. Units sold in a median of 10 days, one day slower than February and 11 days faster than a year ago.

“The incredible demand for established homes is reflected in these selling times,” Ms Hart said.

“Such rapid turnover makes it very challenging for buyers and means they need to cover all bases in their search for a property. This includes signing up for property alerts on websites like www.reiwa.com, registering with agents in the area where they are looking to buy, and even engaging buyer’s agents to do the leg work for them.

“It’s also a challenge for sellers. While it may sound good to say my home sold in under a week, sellers then face the problem of finding somewhere to live, either to buy or rent.

“While price is important, in this market it is also a good idea for buyers to understand what is important to the seller. This may be a long settlement to give them time to find a home or the ability to rent the home back for a period of time. It may also include a large deposit or lack of conditions. Buyers should speak to the selling agent about the best way to make their offer attractive.”

According to www.reiwa.com data, the fastest selling suburbs for houses in March 2024 were Cooloongup, Parmelia and Shenton Park (four days); and Butler, Clarkson, Golden Bay, Huntingdale, Lakelands, Palmyra and Port Kennedy (five days).

Listings for sale

Active listings* settled at 3,654 at the end of March. This was 8.9 per cent lower than February 2024 and 48.7 per cent lower than a year ago.

Ms Hart said properties were still coming to market in good numbers, but demand continued to exceed supply, keeping active listings low.

“The number of new listings for January and February were slightly higher than 12 months ago and on par with the five-year average,” Ms Hart said.

“New listings for March were lower than March 2023 and the five-year average, but this is very likely to be a reflection of Easter and school holidays falling at the end of the month and people delaying their decisions to sell for a few weeks.”

Perth rental market

Perth’s median dwelling rent rose to $649 per week in March. This was 3 per cent higher than February and 18 per cent higher than a year ago.

The median weekly rent for houses remained stable at $650 but was 18.2 per cent higher than March 2023. The median rent for units rose to $600 per week, up 3.4 per cent month-on-month and 20 per cent higher year-on-year. According to www.reiwa.com, the suburbs that saw the most growth in their median weekly dwelling rent price in March were Rockingham (up 10 per cent to $550), Mosman Park (up 8.3 per cent to $813), Morley (up 8.3 per cent to $650), Gosnells (up 5.5 per cent to $580) and North Coogee (up 5.3 per cent to $790).

There were 1,840 properties available for rent on www.reiwa.com at the end of March. This was 10.8 per cent higher than February 2024, but 4.2 per cent lower than the same time last year.

Ms Hart said rental supply remained challenging.

“Rental listings are chronically low,” Ms Hart said. “They have been below 2,000 for 13 out of the last 15 months and haven’t been consistently above 2,000 since early 2022. Homes continue to rent quickly and the vacancy rate remains extremely low."

“As with the sales market, population growth and low building completions continue to put pressure on the rental market and we can expect prices to rise and listings and the vacancy rate to remain low for some time.”

Median leasing times

Homes leased in a median of 15 days during March, unchanged from February, but one day faster than 12 months ago. www.reiwa.com data showed the suburbs recording the fastest median leasing times were Highgate (six days); Piara Waters (seven days); Doubleview (eight days); Inglewood and Palmyra (nine days); and Westminster, Balcatta, Fremantle, Innaloo and Treeby (10 days).

* Active listings – the number of properties advertised on www.reiwa.com at any given time. New listings – new properties listed for sale.

Original article: https://reiwa.com.au/news/perth-house-prices-reach-new-high/