The median house price in Perth reached a new peak in July, soaring to $560,000. This represents a 0.9% increase compared to June and a significant 4.7% rise from the same period last year. Surpassing the previous record of $545,000 set in 2014, the steady upward trend in median house prices has been a notable feature throughout the year, according to REIWA CEO Cath Hart.
While substantial price hikes may grab attention, the current moderate increases are considered healthier for the market. They allow sellers to enjoy capital growth over time while maintaining a relatively affordable and accessible home ownership scenario. Despite the median house price reaching $560,000, there are still 99 suburbs with median house prices below this level, offering viable options for potential buyers.
Conversely, the median unit price experienced a slight dip of 0.4% in July, settling at $398,000, which is 2.9% lower than the previous year.
Throughout July, many other market metrics remained stable, including median rent prices and time to sell and lease properties.
Perth house price growth
CoreLogic’s home value index indicates that Perth’s housing market continued to flourish, with a 1% increase in July and an impressive 3.2% rise over the last three months.
Notable suburbs that experienced substantial growth in house prices during July were Wannanup (up 2.4% to $599,000), Nedlands (up 2% to $1,989,750), East Victoria Park (up 2% to $755,000), South Yunderup (up 2% to $520,000), and Secret Harbour and Quinns Rocks (up 1.7% to $559,500 and $615,000, respectively). Additionally, Sorrento, Safety Bay, Duncraig, and Joondalup also recorded growth above 1%.
The number of properties available for sale in Perth decreased to 5,181 at the end of July, marking a 3.1% decline from June and a substantial 39.4% decrease from 12 months ago. Ms. Hart noted that the rapid sale of properties was keeping the number of listings on REIWA’s website low. While there’s an expectation that listings may increase as spring approaches, it will still take some time to return to a traditional balanced market.
Time on the market
The time it took to sell a house remained unchanged from the previous month, with a median of 10 days in July, matching the record low set in June. The fastest-selling suburbs during this period were Greenfields, Cooloongup, and Dayton (four days); Seville Grove and Wellard (five days); and Harrisdale, Armadale, Atwell, Kardinya, and Mandurah (six days).
Perth rental market
In the rental market, median rent prices remained stable in July. The median weekly rent for houses was $580, and for units, it was $525, while Perth’s overall median dwelling rent price held steady at $550 per week due to a substantial number of leases around that price.
Among the suburbs experiencing significant growth in median rent price were Glendalough (up 60% to $690 per week), Shoalwater (up 40% to $560), Applecross (up 28% to $693), Bassendean (up 28% to $640), and West Leederville (up 25% to $835).
The number of properties available for rent on REIWA’s website decreased to 1,876 at the end of July, representing an 11.8% decline from June and a substantial 16.4% decrease compared to July of the previous year. The median leasing time during July remained unchanged from June, with a median of 16 days.
Among the suburbs with the fastest median leasing times were Hamilton Hill (six days), Canning Vale (eight days), Glendalough, Gosnells, and Yokine (nine days), and Balga and Shenton Park (10 days), with Banksia Grove, Morley, and Nollamara close behind at 11 days.
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