Houses and units: a tale of two markets

Perth’s house market is on the rise, with the median price increasing 3.2 per cent in the year to April. 

“The preliminary median house price for April is sitting at $547,000, which is $500 below the current figure for March, but www.reiwa.com sales data suggests this will increase as more sales settle in the coming months. It was $530,000 at the same time last year,” REIWA CEO Cath Hart said. 

“Our data is showing increased activity in the $500,000 - $1 million price range and this is contributing to the increase. 

“On the other hand, the unit market is remaining relatively stable. The preliminary annual median is $399,500, $500 lower (-0.1 per cent) than March. It is also $500 lower than three months ago and down $15,500 (3.7 per cent) over the year. 

“The strong demand for houses is reflected in the selling time, with houses selling in a median 14 days in April, while units took a median 26 days.” 

The rental market is showing a similar trend. 

The median weekly rent for houses has risen from $550 in March to $575 in April, a 4.5 per cent increase over the month, and 19.8 per cent ($95) over the year. 

The median weekly unit rent has also been rising, but not at the same rate. It was $500 in April, unchanged from March, and $70 higher (16.3 per cent) than April 2022. 

“In this tight market it’s worth considering that units can be a more affordable option for buyers and renters,” Ms Hart said. 

“They’re a good step for first-home buyers looking to get into the market and can potentially be rented out in the future and used to provide equity for a future second home. 

CoreLogic home value index 

CoreLogic’s Perth home value index increased 0.6 per cent in April, 1 per cent over the quarter and 1.3 per cent over the year. Along with Adelaide, Perth is the only capital to show growth over the 12 months. 

According to www.reiwa.com, the top performing suburbs for house price growth in April were Victoria Park (up 3 per cent to $782,500), Coodanup (up 2.8 per cent to $365,000), Eglinton (up 2.7 per cent to $475,000), Quinns Rocks (up 2.4 per cent to $610,000) and Ocean Reef (up 2.1 per cent to $$970,000). 

Dawesville, Stirling, Golden Bay, Bentley and Yokine also recorded moderate growth. 

Listings for sale 

There were 6,570 properties for sale on www.reiwa.com at the end of April. This is a 7.8 per cent decrease from March and 18.5 per cent lower than the same time last year. 

“While April traditionally has less market activity due to the number of holidays during the month, the last time we saw the number of properties available for sale at this level was in June 2010,” Ms Hart said. 

“While this sounds concerning, properties are still coming to the market at reasonable levels. It is the speed of sales that is keeping this number low. 

“Right now sales are tracking at the same level as new listings, which essentially means that as one property comes to the market, another sells.” 

www.reiwa.com weekly data showed property listings have remained below 7,000 since the beginning of the month. 

Time on market 

According to www.reiwa.com data the fastest selling suburbs were Orelia (two days); Cooloongup and Merriwa (four days); Brabham and Lynwood (five days); and Alkimos, Aveley, Heathridge, Southern River and Warnbro (six days). 

“With the exception of Heathridge and Southern River, these suburbs have median house prices well below the Perth median – fastest-selling Orelia has a median house price of $370,000 – indicating buyers are seeking value and acting quickly when they find it,” Ms Hart said. 

“Similarly, nine of the 10 suburbs with the most sales for the month also have median house prices below the Perth median.” 

Perth rental market 

Median rent price 

Perth’s median dwelling rent price was $550 per week for April. This is unchanged from March, but $30 higher (5.8 per cent) than three months ago and $80 higher (17 per cent) than April 2022. 

While the median weekly house rent price rose over the month, a higher proportion of unit leases in April compared with March has kept the overall median stable. 

According to www.reiwa.com, the suburbs that saw the most growth in their median rent price in April were Wilson (up 43 per cent to $650 per week), Kardinya (up 39 per cent to $650), Beckenham (up 31 per cent to $525), Mosman Park (up 20 per cent to $663), and Fremantle (up 20 per cent to $650). 

Listings for rent 

There were 1,977 properties for rent on www.reiwa.com at the end of April, a 3 per cent increase on March, but 20.6 per cent lower than April 2022. 

“Rental listings remain below 2,000 and have been at this level since August 2022,” Ms Hart said. 

“New listings for rent are at low levels at the moment and this will see the number of available homes remaining low.” 

Median leasing times 

It took a median of 16 days to lease a rental during April, two days slower than March, but two days faster than a year ago. 

“Demand is still high in the rental market,” Ms Hart said. 

“The slight increase in the time to lease a property is more a reflection of the number of public holidays and the school holidays in April, rather than a lessening in demand.” 

www.reiwa.com data showed the suburbs recording the fastest median leasing times were Maddington (eight days); Southern River (nine days); Bentley (10 days); Nollamara, Nedlands, North Coogee, Piara Waters and Tuart Hill (11 days); and Highgate and Spearwood (12 days).