Discover How Houses Are Selling Twice as Fast as a Year Ago in Perth
Welcome to the latest real estate market update for Perth in October 2023. In this comprehensive overview, we’ll explore the remarkable trends and developments that are shaping the city’s property landscape.
Record-Breaking Sales
The most eye-catching trend in Perth’s real estate market is the record-breaking speed at which houses are being sold. In October 2023, the median time for a house to find a new owner was just eight days. This is a stunning achievement, and it’s nearly twice as fast as the 15 days it took in October 2022. The shift in the dynamics of the housing market is a clear indicator of the overwhelming demand for established homes.
The Perfect Storm
Cath Hart, the CEO of the Real Estate Institute of Western Australia (REIWA), describes the current market scenario as a “perfect storm.” This convergence of factors includes robust population growth, challenges in the rental market, and ongoing constraints in the construction sector. As a result, many potential homeowners are opting to buy existing homes rather than build or seek rental properties.
Proactive Strategies for Buyers
For those navigating the current market, Ms. Hart offers valuable advice. She emphasizes the importance of preparation, patience, and persistence for buyers. Being proactive is key, with suggestions like signing up for alerts on www.reiwa.com to stay informed about new listings and registering your interest with REIWA agents in your desired areas.
Another option is to consider engaging a REIWA buyer’s agent. These professionals can streamline the process and liaise with selling agents to secure a property that aligns with your needs.
Fastest Selling Suburbs
According to www.reiwa.com data, some Perth suburbs stand out for their rapid sales in October:
- Cooloongup and Seville Grove had the fastest sales, taking just three days on average.
- Huntingdale followed closely with properties selling in four days.
- Greenfields, Coodanup, Gosnells, Kelmscott, Mandurah, Orelia, and Tapping had a median sales time of five days.
These suburbs have consistently appeared on the fastest selling list in recent months, reflecting not only the speed of sales but also their enduring affordability.
Perth Sales Market
In October, the Perth median house price surged to a new high of $575,000, marking a 0.9% increase from September and a substantial 6.5% rise from October 2022. While the median unit price remained steady at $400,000, it registered a modest 1.7% decline year-on-year. The outlook for the median house price is positive, with expectations of further increases in the coming months.
Strongest Performing Capital City
Perth emerged as the strongest performing capital city in October, according to CoreLogic’s Home Value Index. With 1.6% growth during the month, Perth outperformed other capitals. On an annual basis, Perth’s growth reached 10.8%, surpassing Sydney at 9%. Despite this robust growth, Perth remains the second most affordable capital city in terms of dwelling value.
Listings for Sale
As of the end of October, there were 5,011 listings on www.reiwa.com. While this marks a 2.7% increase from the 30-year low recorded in September, it still stands at 37.4% lower than the same time last year. The major difference between the current market and a year ago is the speed of sales. Homes are selling rapidly, with sales consistently outpacing new listings.
Perth Rental Market
The rental market in Perth continues to experience significant shifts. In October, the median dwelling rent price reached a new record of $590 per week, reflecting a 1.7% increase from September and a substantial 18% rise compared to the same time last year. For houses and units, the median weekly rents remained stable at $600 and $550 per week, respectively.
Listings for Rent
As of the end of October, there were 1,719 properties available for rent on www.reiwa.com, marking a 2.3% increase from September and remaining unchanged from October 2022. Supply challenges, particularly in the rental market, are likely to persist for the remainder of the year.
Median Leasing Times
The median time to lease a rental property during October stood at 14 days, remaining unchanged from both September and the previous year. Suburbs with the fastest median leasing times included Kardinya, Balcatta, Balga, and Duncraig, with properties taking just eight days on average. Seville Grove, Banksia Grove, Innaloo, and Thornlie had a median leasing time of nine days, while Scarborough and Cannington followed closely with 10 and 11 days, respectively.
Sales Transactions on the Rise
In the week ending October 30, 2023, sales transactions in Perth experienced a welcome uptick of 2.3% compared to the previous week. Our sources at REIWA (Real Estate Institute of Western Australia) reported a total of 997 transactions. While this increase is certainly encouraging, let’s break it down further:
House Sales: House sales remained relatively stable, showing similar numbers to the previous week.
Unit Sales: The unit market saw a positive surge with a 3.7% increase in sales.
Vacant Land Sales: The vacant land market experienced the most significant boost, with a remarkable 28.1% increase in sales.
Properties Available for Sale
At the close of the week, there were 5,031 properties available for sale in Perth. This figure is quite similar to the previous week and is primarily attributed to the following:
Houses: House listings remained relatively stable, causing only minor fluctuations.
Units: Unit listings increased by 1.8%.
Vacant Land: Listings for vacant land decreased by 1.8%.
While this week’s total properties available for sale are 2.8% higher than four weeks ago, it’s essential to note that they are significantly lower, by 38.9%, compared to levels seen in the same period last year.
Perth’s Rental Market Insights
In Perth’s rental market, REIWA members reported that there were 1,719 properties available for rent at the end of last week, showing similar numbers to the week prior. Delving deeper into the statistics, we can observe the following trends:
Rental Listings: The rental listings figure for the week was 2.4% higher than four weeks ago and closely resembled numbers from the same period last year.
Leased Properties: A total of 604 properties were leased last week, representing a 2.9% decrease compared to the previous week. However, this number was 25.8% higher than four weeks ago, indicating a growing demand for rental properties, which is consistent with the same period last year.
For an in-depth breakdown of the past week’s market trends, we invite you to explore our Perth Market Snapshot graphic.
The Perth real estate market is experiencing remarkable growth and evolving dynamics, making it an exciting yet challenging environment for both buyers and renters. Stay tuned for more updates on this thriving real estate scene.
