Records tumbled in June – 3 July 2023

It took a median of 10 days to sell a property in June, the fastest time on record, according to www.reiwa.com data.

“Demand remains strong and properties continue to sell incredibly quickly,” REIWA President Joe White said.

“Demand is being fuelled by population growth, along with more people turning to the established homes market due to the delays and rising costs in the building industry and the challenges of the rental market.”

The fasted selling suburbs were Greenfields and Parmelia (three days); Balga, Dudley Park and Port Kennedy (four days); and Bertram, Cooloongup, Armadale, Carlisle and Leeming (five days).

Eight of the top 10 fastest selling suburbs had median house prices well below the Perth median, with affordability a key factor for buyers who are acting quickly when they see value.

“While demand has remained strong in the face of 12 interest rate rises, buyers are definitely more budget conscious. They are factoring in more rate rises and buying within their means,” Mr White said.

Listings for sale

The number of properties available for sale in Perth fell to 5,384 at the end of June. This was 4.4 per cent lower than May, and 37.5 per cent lower than 12 months ago.

“There is a lot of talk about undersupply at the moment and whether people are reluctant to sell,” Mr White said.

“New listings traditionally decline over the Winter months, which is part of what we are seeing at the moment. In addition, we are also experiencing unique market conditions, which are proving just as challenging for sellers as they are for buyers or tenants. This is having some impact on new listings.

“Sellers have the issue of finding somewhere else to live but with homes selling in just over a week and the difficulty in finding a rental also a challenge, many are waiting to buy before they sell. It takes time to find the right property before sellers can list their current home.

“The delay in building completions is also keeping people in their current property. As building completions increase, we expect to see more homes come onto the market.”

On a positive note for buyers, while the number of listings on www.reiwa.com was at a record 13-year low, there was an increase in new listings towards the end of the month. Another positive change was the number of sales dropping below the number of new listings again.

“For the last two months the sales volume has been around 13 per cent above the number of new properties coming to market. Properties have been selling soon after they’re advertised and this was keeping the number of properties available for sale low,” Mr White said.

“Three months ago sales were 8 per cent below new listings and a year ago they were 18 per cent lower.

“At the end of June, the number of sales was 1 per cent below new listings. The difference between them may be small but it shows a shift in the trend and is a good sign for people looking to buy.”

Mr White said buyers didn’t need to worry about missing out.

“Properties are still coming on to the market, it just takes patience and persistence,” he said.

“The speed of sales does mean that buyers need to have their finances in order so they can act quickly when they see a property they like. And in most cases they won’t have time to view a property and circle back to it in a few weeks after seeing what else comes to the market – it is likely to have sold in that time.”

CoreLogic home value index

Perth’s property values continued to hold up well.

CoreLogic’s Perth home value index increased 0.9 per cent in June and 2.8 per cent over the past three months. All major capital city markets continued to improve, but Perth was the only one to show growth over the past 12 months, having recovered from a relatively mild -0.9 per cent decline through last year’s downturn.

Perth’s median house price rose marginally to $551,000 over the 12 months to June. While this was only 0.2 per cent higher than May, it was 4 per cent higher than June 2022.

Mr White said the median house price is expected to rise further in coming months.

“The trend for house prices shows a steady increase and we will see more significant growth towards the end of the year,” he said.

“However, the unit market is remaining fairly stable, with the median hovering around $400,000 and little change is expected in the near future.”

According to www.reiwa.com, the top performing suburbs for house price growth in June were Beeliar (up 3 per cent to $625,000), Hammond Park (up 2.6 per cent to $533,500), Dawesville (up 1.9 per cent to $550,000), Cooloongup (up 1.8 per cent to $417,500), and Caversham and Armadale (up 1.4 per cent to $547,500 and $329,500 respectively).

Palmyra, Butler, Waikiki and Cloverdale all recorded growth over 1 per cent.

Perth rental market

Median rent price

Median rents reached new heights in June.

The median house price hit a record $580 per week, up from $570 in May and $500 at the same time last year.

The median unit price also set a new record. It rose $20 over the month to $520 per week. This was $80 higher than June 2022.

Perth’s median dwelling rent price remained unchanged at $550 per week, reflecting a large number of leases around that price.

“We can expect the median rents to continue to increase as 12-month fixed-term leases come up for renewal,” Mr White said.

According to www.reiwa.com, the suburbs that saw the most growth in their median rent price in June were Claremont (up 44 per cent to $828 per week), Sorrento (up 43 per cent to $1,000), Victoria Park (up 33 per cent to $600), Inglewood (up 28 per cent to $600), and West Leederville (up 23 per cent to $750).

Listings for rent

There were 2,146 properties available for rent on www.reiwa.com at the end of June, a 7.4 per cent increase on May, but 5.7 per cent lower than June 2022.

“It’s a small change, but an early indication that the rental market is easing,” Mr White said.

“For example, while the number of listings is about 6 per cent lower than in June 2022, this is a big improvement compared to the past few months when it’s been about 20 per cent lower year-on-year.

“Building completions are playing a role in the increasing listings. Our members are reporting more tenants moving out into their long-awaited new homes and this is freeing up some supply.

“We are also seeing an increase in requests for additional occupants as tenants seek to split the rising rent costs as well as address the difficulty of finding a property in current tight conditions. This is also easing some of the pressure on the market.”

Median leasing times

It took a median of 16 days to lease a rental during May, one day slower than April, and two days slower than three months ago.

“The slight slowing in the time to fill vacancies is also an indication of a change in the market,” Mr White said.

“We expect a slight easing in the vacancy rate soon.”

www.reiwa.com data showed the suburbs recording the fastest median leasing times were Piara Waters, Dayton and Port Kennedy (nine days); Spearwood, Bassendean, Bull Creek, East Cannington, Kelmscott and Thornlie (10 days); and Crawley (12 days).

Source: reiwa.com.au

3 July 2023