Perth median unit price matches 2014 peak

Perth’s median unit sale price has reached the previous peak set in 2014, rising 2.2 per cent over July to $450,000.

This was 12.5 per cent higher year-on-year.

REIWA President Joe White said it had been a long wait for unit owners.

“The median house sale price exceeded its 2014 peak in December 2022 and has been experiencing strong growth since then,” he said.

“The unit market was slower to respond to market conditions, and prices were fairly stable over 2023, but growth has accelerated this year and seen it equal the previous record.

“This is a result of the rising demand for units, which provide a more affordable entry point to the market for buyers, particularly in suburbs close to the CBD.

“More price growth is expected over 2024, which will be welcome news for unit owners.”

Mr White said the increase in demand for units was evident in the data for new unit listings and sales.

“New unit listings in 2023-24 were 13.0 per cent higher than the five-year average but sales were 26.6 per cent higher than the five-year average,” he said.

“The demand for units is also reflected in the decline in the time to sell, with days on market at a record low.”

The suburbs that saw the most median unit sale price growth in July were Balga (up 4.6 per cent to $375,500), Cannington (up 4.2 per cent to $375,000), Osborne Park (up 3.5 per cent to $367,500), Claremont (up 3.2 per cent to $797,000) and Fremantle (up 2.7 per cent to $532,000).

Mandurah, Leederville, Wembley, Midland and Nedlands were also among the top performers, recording growth of 1.3 per cent or more over the month.

The median house sale price continued its rise, reaching $675,000 in July, an increase of 2.3 per cent on the $660,000 reported in June and 19.5 per cent higher than July 2023.

The suburbs that saw the most median house sale price growth in July were Heathridge (up 4.6 per cent to $701,000), Coodanup (up 3.8 per cent to $500,000), Wannanup (up 3.6 per cent to $725,000), Swan View (up 3.5 per cent to $590,000) and Quinns Rocks (up 3.2 per cent to $740,000).

Maddington, Greenfields, Parmelia, Ballajura and High Wycombe were also among the top performers, recording growth of 2.2 per cent or more over the month.

Time on market

Houses sold in a median of nine days in July, one day slower than June and one day faster than a year ago.

Units sold in a median of nine days in July, two days faster than June and seven days faster than a year ago.

According to www.reiwa.com data, the fastest selling suburbs for houses in July were Dianella, Greenfields, South Yunderup and Yangebup (five days); and Bentley, Langford, Banksia Grove, Beeliar, Brabham and Clarkson (six days).

The fastest selling suburbs for units were Bentley (five days); Tuart Hill, Como, Wembley and Yokine (six days); and Rivervale, Scarborough, Subiaco, Midland and Innaloo (seven days).

“Houses and units are selling in record timeframes,” Mr White said.

“The change in demand for units can be seen in the change in its median time on market, falling from 16 days a year ago to nine days now.”

Listings for sale

Active listings* settled at 3,279 at the end of July. This was 2.6 per cent lower than June and 36.0 per cent lower than a year ago.

“Active listings remain at record lows,” Mr White said.

“While this suggests there are not many properties coming to market, the data tells a different story.

“The number of settled sales for 2023-24 is already 2.0 per cent higher than 2022-23, and this will increase as more properties settle.

“Properties have still been coming to the market in good numbers, but they are literally flying off the shelves, as shown by the low days on market.”

Perth rental market

Perth’s rental market continues to ease, with the median weekly dwelling and house rents holding steady at $650 in July. The median weekly dwelling rent was 18.2 per cent higher year-on-year, while the median weekly house rent was 12.1 per cent higher.

The median weekly unit rent rose to $620, a 3.3 per cent increase on June and 17.0 per cent higher than 12 months ago.

Mr White said despite the rise in the median unit rent, the market appeared to have reached an affordability ceiling.

“Tenants cannot keep up with constantly rising rent prices,” he said.

“They are either renting with other people to share the cost burden or seeking to rent smaller more affordable properties.

“This month’s rise in the unit price is likely to be a result of the demand for more affordable rentals.

“We expect to see more periods of rent price stability over the year.”

According to www.reiwa.com, the suburbs that saw the most growth in their median weekly dwelling rent price in July were Claremont (up 15.4 per cent to $750), South Perth (up 7.7 per cent to $700), Fremantle (up 7.1 per cent to $750), Victoria Park (up 5.7 per cent to $600) and Yokine (up 3.7 per cent to $633). 

Listings for rent

There were 2,507 properties available for rent on www.reiwa.com at the end of July. This was 1.3 per cent higher than June and 34.6 per cent higher than the same time last year.

“Rental listings are rising slowly each month, which is a positive sign for prospective tenants,” Mr White said.

“Members continue to report more completed new builds coming to market. These include a number of dual-key properties, which in effect adds two new residences to rental supply.”

Median leasing times

Homes leased in a median of 18 days during July, unchanged from June and two days slower than 12 months ago.

www.reiwa.com data showed the suburbs recording the fastest median leasing times were Wembley (nine days); Dianella, Palmyra and Spearwood (11 days); Willetton, Forrestfield, Hamilton Hill and Two Rocks (12 days); and Balga and Mandurah (13 days).

* Active listings – the number of properties advertised on www.reiwa.com at any given time. New listings – new properties listed for sale.