price reaches 2014 peak
Perth's median unit price reaches its 2014 peak.
Perth's median unit sale price has hit the previous peak from 2014, increasing by 2.2 percent in July to reach $450,000.
Perth's median unit sale price has matched the previous peak from 2014, climbing 2.2 percent in July to reach $450,000. This figure is 12.5 percent higher compared to the same time last year.
REIWA President Joe White said it had been a long wait for unit owners.
“The median house sale price exceeded its 2014 peak in December 2022 and has been experiencing strong growth since then,” he said.
“The unit market was slower to respond to market conditions, and prices were fairly stable over 2023, but growth has accelerated this year and seen it equal the previous record.
“This is a result of the rising demand for units, which provide a more affordable entry point to the market for buyers, particularly in suburbs close to the CBD.
Mr. White noted that the rising demand for units is reflected in the data for new unit listings and sales.
“New unit listings in 2023-24 were 13.0 per cent higher than the five-year average but sales were 26.6 per cent higher than the five-year average,” he said.
“The demand for units is also reflected in the decline in the time to sell, with days on market at a record low.”
The suburbs that saw the highest growth in median unit sale prices in July were Balga (up 4.6% to $375,500), Cannington (up 4.2% to $375,000), Osborne Park (up 3.5% to $367,500), Claremont (up 3.2% to $797,000), and Fremantle (up 2.7% to $532,000).
Mandurah, Leederville, Wembley, Midland, and Nedlands also performed well, with growth of 1.3% or more over the month.
The median house sale price continued its upward trend, reaching $675,000 in July. This marks a 2.3% increase from the $660,000 reported in June and is 19.5% higher compared to July 2023.
The suburbs with the highest growth in median house sale prices in July were Heathridge (up 4.6% to $701,000), Coodanup (up 3.8% to $500,000), Wannanup (up 3.6% to $725,000), Swan View (up 3.5% to $590,000), and Quinns Rocks (up 3.2% to $740,000).
Maddington, Greenfields, Parmelia, Ballajura, and High Wycombe also saw notable growth, with increases of 2.2% or more over the month.
Time on market
Houses sold in a median of nine days in July, which is one day slower than June but one day faster compared to a year ago.
Units sold in a median of nine days in July, two days faster than June and seven days quicker than a year ago.
According to www.reiwa.com data, the fastest selling suburbs for houses in July were Dianella, Greenfields, South Yunderup, and Yangebup (five days); and Bentley, Langford, Banksia Grove, Beeliar, Brabham, and Clarkson (six days).
For units, the fastest selling suburbs were Bentley (five days); Tuart Hill, Como, Wembley, and Yokine (six days); and Rivervale, Scarborough, Subiaco, Midland, and Innaloo (seven days).
“Houses and units are selling in record timeframes,” Mr White said.
“The change in demand for units can be seen in the change in its median time on market, falling from 16 days a year ago to nine days now.”
Listings for sale:
Active listings settled at 3,279 at the end of July. This is 2.6 per cent lower than in June and 36.0 per cent lower compared to a year ago.
“Active listings remain at record lows,” Mr White said.
“While this suggests there are not many properties coming to market, the data tells a different story.
“The number of settled sales for 2023-24 is already 2.0 per cent higher than 2022-23, and this will increase as more properties settle.
“Properties have still been coming to the market in good numbers, but they are literally flying off the shelves, as shown by the low days on market.”
Perth rental market:
Perth’s rental market continues to ease, with the median weekly dwelling and house rents remaining at $650 in July. This represents an 18.2 per cent increase year-on-year for the median weekly dwelling rent and a 12.1 per cent rise for the median weekly house rent.
The median weekly unit rent increased to $620, marking a 3.3 per cent rise from June and a 17.0 per cent increase compared to the same time last year.
Mr White noted that despite the rise in the median unit rent, the market seems to have reached an affordability ceiling.
“Tenants cannot keep up with constantly rising rent prices,” he said.
“They are either renting with other people to share the cost burden or seeking to rent smaller more affordable properties.
“This month’s rise in the unit price is likely to be a result of the demand for more affordable rentals.
“We expect to see more periods of rent price stability over the year.”
According to www.reiwa.com, the suburbs that saw the highest growth in their median weekly dwelling rent prices in July were Claremont (up 15.4 per cent to $750), South Perth (up 7.7 per cent to $700), Fremantle (up 7.1 per cent to $750), Victoria Park (up 5.7 per cent to $600), and Yokine (up 3.7 per cent to $633).
Listings for rent:
There were 2,507 properties available for rent on www.reiwa.com at the end of July. This represents a 1.3 per cent increase from June and a 34.6 per cent rise compared to the same time last year.
“Rental listings are rising slowly each month, which is a positive sign for prospective tenants,” Mr White said.
“Members continue to report more completed new builds coming to market. These include a number of dual-key properties, which in effect adds two new residences to rental supply.”
Median leasing times:
Homes were leased in a median of 18 days during July, consistent with June and two days slower than the same period last year.
www.reiwa.com data revealed that the fastest median leasing times were in Wembley (nine days); Dianella, Palmyra, and Spearwood (11 days); Willetton, Forrestfield, Hamilton Hill, and Two Rocks (12 days); and Balga and Mandurah (13 days).