01 April 2021
The median time to sell a property in Perth in March was 17 days, the lowest it has been since 2006.
REIWA President Damian Collins said properties in Perth were selling the quickest they had in 15 years and 26 days faster than they were in March 2020.
“The turnaround we are witnessing in the Perth property market is quite remarkable. In the span of 12 months, we have seen the Perth median selling time drop from 43 days in March 2020 to just 17 days in March 2021. That is a reduction in the median time of almost four weeks or 26 days.
“Perth is a seller’s market at the moment and buyers are facing a lot of competition to secure a property, which is reflected in how quickly we are seeing properties sell,” Mr Collins said.
Home value index and median sale price
CoreLogic data shows the Perth home value index lifted 1.8 per cent in March.
“This is the seventh month in a row the Perth home value index has increased, and it shows no signs of slowing down. On a quarterly basis, the home value index is up five per cent since the start of the year,” Mr Collins said.
reiwa.com data supports the CoreLogic findings, with the Perth median house sale price sitting at $495,000 in March 2021, up from $480,000 in March 2020.
“There were 67 suburbs across Perth that recorded an increase in median house sale price during March. The five suburbs with the biggest growth were Cottesloe (up 5.4 per cent to $1.95 million), Como (up 4.1 per cent to $895,000), Rockingham (up 3.8 per cent to $410,000), Lake Coogee (up 3.5 per cent $587,500) and Wannanup (up 3.4 per cent to $530,000),” Mr Collins said.
Other suburbs to record median sale price growth were Yangebup, Duncraig, Claremont, Ballajura and Dudley Park.
Listings for sale
There were 8,247 properties for sale in Perth on reiwa.com at the end of March.
“This is up 5.1 per cent compared to February 2021, but down 32.9 per cent when compared to the same time last year,” Mr Collins said.
“While there are still 4,000 fewer listings for sale than there were at the end of March 2020, the increase in the number of properties for sale in March 2021 is an encouraging trend. It appears Perth property owners are increasingly recognising there is excellent opportunity available to sell their home quickly and at a competitive price.”
Perth rental market
Leasing activity increased 15.6 per cent in Perth in March, according to reiwa.com data.
“There was increased activity in the rental market during March, which can be attributed to tenants and property owners making preparations for the end of the rental moratorium. Despite this, leasing levels are still down 18.8 per cent compared to this time last year due to the rental shortage the state is experiencing,” Mr Collins said.
Median rent price
Perth’s median rent price held at $400 per week for the third month in a row in March.
“While the Perth median rent has increased $40 per week over the last year, it is still $50 lower than it was in 2014 and Perth remains the most affordable place for tenants in the country,” Mr Collins said.
reiwa.com data shows the suburbs to record the biggest rent price increases during March were Bassendean (up $15 to $395 per week) and Joondalup (up $15 to $400 per week).
“Other suburbs to record strong rent price growth were Butler, Nollamara, Wellard, Cannington, Clarkson, Beckenham, Bentley and Harrisdale – all of which saw their median rents increase $10 per week in March,” Mr Collins said.
Listings for rent and median leasing days
The median time to lease a rental in Perth during March was 19 days.
“This is the same amount of time it took in February, but nine days quicker than it was in March 2020. The last time rentals were leased this fast was in June 2013,” Mr Collins said.
There were 2,722 properties listed for rent in Perth on reiwa.com at the end of March.
“This marks the seventh consecutive month listings for rent have sat below 3,000. The figure for March is down 1.6 per cent compared to February 2021 and a substantial 49.9 per cent when compared to March 2020,” Mr Collins said.
“Perth desperately needs an influx of available rental stock. Now that the rental moratorium is over, we should start to see more properties come to market in the coming months, but it’s not going to fix all the problems. We need to incentivise property investment in WA so we can meet the demand for rental housing.”
Western Australian property prices are expected to grow by 15 per cent this year
according to REIWA’s revised 2021 forecast.
REIWA President Damian Collins said the Institute was revising its 2021 forecast following the strong price growth experienced in the first three months of 2021.
“CoreLogic’s Perth home value index shows prices have grown five per cent in the first three months of 2021. In November 2020 REIWA forecast prices in WA would increase as much as 10 per cent in 2021, however, based on what we have seen in the first quarter of 2021, we now anticipate growth of 15 per cent by the end of the year.
“There are a number of factors contributing to the strong price growth we have seen and expect to continue to see this year. WA is still the most affordable state in the country when comparing income to median house prices. The current Perth median house sale price is $495,000, which is down from the peak of $550,000 in 2014.
“We hit the bottom of the market around June last year following the COVID-19 lockdown and since then consumer confidence has returned. Buyers who were waiting for the bottom to hit are now eager to get into the market and take advantage of the record low interest rates.
“There is also a fundamental imbalance between supply and demand in the sales market right now, with more buyers looking for a property than there are houses listed for sale. Buyers must act quickly and in competition with one another to secure a property, which is driving up house prices.
“When you factor all these components in, it is a perfect storm for higher-than-expected house price growth this year. We need to get more homes and apartments built. Until we see supply catch up with demand, we will see prices continue to rise,” Mr Collins said.