Median house prices top $500,000 as buyer appetite continues strong
Perth’s median house price has surpassed $500,000 for the first time since December 2018, according to recent data from the Real Estate Institute of Western Australia.
REIWA President Damian Collins said that data from reiwa.com showed Perth’s median house price rose to $508,000 in April.
“The Perth property market continued its strong recovery in April,” Collins said. “It’s a testament to the strength of our local market that even with the Easter and Anzac public holidays, as well as another lockdown during the month, that prices continue to rise.”
Perth’s home value index rose 0.8% in April, according to data from CoreLogic.
“April marks the ninth consecutive month of price increases,” Collins said. “Since August 2020, the Perth home value index has increased 9.1%, and is up 5.9% in 2021 alone.”
REIWA data showed that 87 suburbs posted an increase in median house sale price in April. The suburbs posting the largest increases were Bullsbrook (up 7.8% to $352,500), Bicton (up 6.6% to $1.14 million), Wilson (up 3.9% to $533,500), Mount Lawley (up 3.5% to $1.035 million) and Secret Harbour (up 3.35 to $445,500).
Listings for sale were also up, with 8,742 properties listed on reiwa.com at the end of April.
“Pleasingly, listings for sale have increased 5.8% during the month,” Collins said. “It’s clear that the current property market conditions are starting to entice more sellers to the market, which is helping to keep up with demand and provide buyers with more choice. On an annual basis, though, there are 25% fewer properties for sale than this time last year, so demand is still outweighing supply.”
The median time to sell a home in Perth is now less than two weeks, with REIWA data revealing that median selling time dropped to 13 days last month.
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“This is two days less than it took in March 2021 and 24 days quicker than in April 2020,” Collins said. “Despite there being more properties available for sale, buyer appetite is still very strong, and sellers continue to enjoy the quickest turnaround in sale times that they have seen in more than 15 years.”
Listings for rent rose 2.5% in April, with 2,731 properties available to rent on reiwa.com at the end of the month.
“This is an encouraging sign, and only the third time in the last 12 months that we have seen listings for rent increase in Perth,” Collins said. “Now that the rental moratorium is over, it appears investors are starting to return to the market, which is something we desperately need to help rectify the state’s rental shortage. Although there is still a long way to go, this is a positive trend and one we hope will gather more momentum in the coming months.”
Perth’s median rent price rose $10 to $420 per week in April.
“The last time rent prices were this high was June 2015, but this is still $30 less per week than the peak median rent price of $450 recorded in 2014,” Collins said. “Perth tenants continue to enjoy some of the most affordable rents in the country.”
Collins said that recent COVID-19 outbreaks in the area shouldn’t slow the property market’s recovery.
“The two instances of COVID-19 community outbreak that have occurred since 23 April should have a minimal short-term impact on the market, provided Perth can get on top of the outbreaks quickly,” he said. “If there are no sustained lockdowns or significant economic impact, REIWA anticipates that the Perth property market will continue its strong recovery.”