Perth's median house sale price climbed in March to a record $620,000, a 2.5% increase, while the median unit sale price ascended 1.2% to $420,000, according to REIWA.
“WA’s population continues to increase at near record rates,” REIWA CEO Cath Hart (pictured above) said, attributing the demographic surge and a shortfall in dwelling completions as key drivers behind the upsurge in established home prices.
Despite speculation about eastern states investors, Hart observed that it is predominantly local buyers propelling the Perth market, willing to pay a premium for desired homes.
“Local buyers are often more emotional,” she said. “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.”
March’s standout suburbs in terms of house sale price growth included Yangebup (up 4% to $644,500), Camillo (up 3.5% to $445,000), Beeliar (up 3.4% to$695,000), Mount Pleasant (up 3.3% to $1,550,000) and Belmont (up 3.2% to $590,000).
Houses in Perth are selling at a median of eight days on the market, underscoring the intense competition among buyers. Units are also moving swiftly, selling in a median of 10 days.
“Such rapid turnover makes it very challenging for buyers and means they need to cover all bases in their search for a property,” Hart said. “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.”
According to data from www.reiwa.com, the suburbs where houses sold the quickest in March 2024 included Cooloongup, Parmelia, and Shenton Park, with properties spending just four days on the market. Close behind, houses in Butler, Clarkson, Golden Bay, Huntingdale, Lakelands, Palmyra, and Port Kennedy took only five days to sell.
The brisk pace of sales poses challenges, with Hart advising buyers to leverage multiple resources in their property hunt and sellers to navigate the subsequent need for new accommodation. Understanding seller preferences, such as settlement times or renting back the home, can make offers more appealing.
Active property listings dropped to 3,654 by March's end, an 8.9% decrease from the previous month and 48.7% lower than the previous year.
Hart noted that while properties are entering the market in healthy volumes, the persistent surpassing of supply by demand keeps the number of active listings low.
“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,” she said.
The rental sector mirrored the sales market's fervor, with Perth’s median dwelling rent increasing to $649 per week, a sign of the persistent pressure from population growth against a backdrop of constrained supply.
Per www.reiwa.com, the top performers in median weekly dwelling rent growth for March included Rockingham, where rents rose by 10% to $550, Mosman Park and Morley, both seeing an 8.3% increase to $813 and $650 respectively, Gosnells with a 5.5% rise to $580, and North Coogee, up 5.3% to $790.
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