The latest data from REIWA reveals a notable trend in Perth’s unit market, with villas, flats, and townhouses emerging as top performers. According to CEO Cath Hart, while the overall median sale price for units is on the rise, the growth isn’t uniform across all segments of the market.
Breaking down the figures, it’s evident that certain segments are experiencing more significant growth, reflecting shifting buyer preferences. Villas stand out as the top performers for price growth, closely followed by flats and townhouses.
Ms. Hart explains that while the appeal of standalone houses remains strong, competition in this segment is high. Villas and townhouses offer a similar lifestyle with added benefits such as private courtyards and low maintenance, making them attractive alternatives for buyers embracing medium-density living.
The growth in the median sale price for flats reflects their affordability, making them an appealing option for first-time buyers and investors alike.
Median Sale Prices: Throughout most of 2023, unit prices remained stable but started showing growth towards the end of the year. The overall median unit price rose by 3.8% to $415,000 by February 2024. Villas demonstrated the most growth, with a median sale price increase of 10.7% to $420,500. Flats followed closely, rising by 10.2% to $270,000, while townhouses saw a 5.8% increase to $592,500.
Median Time on Market: The median time on market for units decreased significantly over the past year, reflecting strong demand. Villas, townhouses, and home units now sell in a median of seven, eight, and nine days respectively, down from much higher figures in previous years. Apartments and flats, although marginally slower, also experienced faster selling times.
Ms. Hart predicts that under current market conditions, prices in the unit market will continue to rise, with low time on market persisting.
