Perth market holds firm in January

1 February 2023

"Perth and WA are still in an excellent position to weather future rate rises, with our strong economy, growing population, limited stock levels and affordable housing."

The Perth property market continues to hold steady in the face of the eight consecutive interest rate increases in 2022.

“Our market remains resilient and stable, particularly when compared to the east coast,” REIWA CEO Cath Hart said.

“While other capitals saw values jump dramatically during the pandemic, the COVID effect was much more subdued in Perth, and as a result we are seeing less of a correction following the interest rate rises.

“Perth and WA are still in an excellent position to weather future rate rises, with our strong economy, growing population, limited stock levels and affordable housing.”

Corelogic home value index

CoreLogic’s Perth home value index decreased marginally in January, down 0.3 per cent from December and down just 0.1 per cent since October.

All capital cities recorded declines, with Brisbane and Hobart seeing the largest falls over the month and past three months.

According to reiwa.com data, the top performing suburbs for house price growth in January were Fremantle (up 2.1 per cent to $1,062,000), East Victoria Park (up 2.1 per cent to $740,000), Yangebup (up 2.0 per cent to $540,000), Ballajura (up 1.7 per cent to $500,000), Mount Lawley (up 1.5 per cent to $1,217,500) and Success (up 1.5 per cent to $593,500).

Listings for sale

There were 7,104 properties for sale on reiwa.com at the end of January. This is up from the 12-year low of 6,931 reported last month, but 10 per cent lower than levels seen a year ago. 

reiwa.com weekly data showed property listings levels have been below 8,000 and close to 7,000 since December 25.

Ms Hart said the number of new properties coming onto the market was of concern.

“We saw the number of new listings decline 13 per cent in the second half of 2022 and new listings in January are down 24 per cent from a year ago,” she said.

“This is what we would expect following the interest rate rises as people become more cautious and wait to see what happens.

“It has helped keep values stable as it has limited supply relative to demand.

“However, if new listings remain low, we’ll see the number of properties for sale continue to decline and the housing shortage worsen.

“And while we were expecting some relief as building completions increased later this year, HIA data showed new home sales in the last quarter of 2022 were 30.9 per cent lower than at the same time in 2022, suggesting the supply of new housing will decline.

“This will further exacerbate the housing shortage.”

Time on market

Perth properties took a median 27 days to sell in January, according to reiwa.com data. This was nine days slower than December and six days slower than a year ago.

“Our data shows the median time to sell traditionally increases in January when people take holidays and businesses close for some time over the festive season,” Ms Hart said.

“While this month’s figure is higher than January 2022, market conditions have changed since then.

“Interest rates are causing some hesitation among buyers. They are also quite discerning; there is limited choice, and they are waiting for the right property at the right price.”

According to reiwa.com data, the fastest selling suburbs in January were Huntingdale (five days); Quinns Rocks and Safety Bay (six days); Beeliar, Cooloongup and Kardinya (seven days) and Landsdale, Padbury, Tapping and Warnbro (eight days).

Perth rental market

Median rent price

Perth’s median rent price was $520 per week for January. This was unchanged from December, but $20 higher than three months ago and $70 higher than January 2022.

“While the overall median remained steady, many suburbs recorded an increase in their weekly rent in January,” Ms Hart said.

“The top performers were Inglewood (up 40 per cent to $625 per week), North Coogee (up 25 per cent to $620), Karrinyup (up 21 per cent to $850) and Leederville (up 21 per cent to $668).

“Demand continues to exceed supply across Perth and, under current conditions, we can expect to see more price increases in coming months.”

Listings for rent

There were 1,905 properties for rent on reiwa.com at the end of January, a significant increase on the 1,443 reported at the end of December. It was also 10.8 per cent higher than three months ago, but 18.2 per cent lower than the same time last year.

“The increase is a welcome change, but the rental market is likely to tighten further with the announcement that Chinese students are required to return to face-to-face study at overseas campuses,” Ms Hart said.

Median leasing times

It took a median of 15 days to lease a rental during January, unchanged from December, and two days faster than January 2021.

Suburbs recording the fastest median leasing times were Success (seven days); Yokine, Cloverdale, Harrisdale, Piara Waters and Westminster (nine days); Duncraig, Forrestfield and Thornlie (10 days); and Bentley (11 days).