Perth property market poised to bloom with new listings this spring selling season
A busy spring selling season could bring continued good fortune for the Perth property market and a welcome boost to the city’s lacklustre inventory levels.
CoreLogic’s latest Hedonic Home Value Index, released on September 1, shows values for Perth real estate dropped marginally by 0.2% in August, but overall property prices were still 4.9% higher for the past year.
The decline is in line with almost all Australian capital cities, except Darwin, which was the only city to experience positive price growth in August with a 0.9% rise in values.
Perth endured one of the most marginal price drops along with Adelaide, where property prices decreased by 0.1%.
The most marked fall was in Sydney where property prices fell by 2.3% in the month and Brisbane, which took a hit of 1.8%.
Perth is now the second most affordable city in Australia, after Darwin, with a median dwelling price of $561,781.
On the rental market, Perth prices remained strong, with 8.7% growth in rents raised for houses in the past year and a 7.1% increase for units and apartments. The rental yield is now at 4.4% – the second highest in the country and well up on the national average of 3.5%.
Mont Property Managing Director Matthew Podesta said Perth was holding its own and had fared better than most other Australian capital cities, which have suffered a series of price tumbles this year.
“We have seen rampant speculation about how the Perth market would react on the back of recent interest rate rises, but the fact is buyers are still incredibly active and there continues to be robust competition for quality homes given the lack of stock currently available,” Mr Podesta said.
“While some sellers are choosing to hit pause on their plans to list, buyers are still purchasing, so with active purchasers in the market now is a great time to sell. Anyone in the market for a new home should act quickly with a competitive offer to give themselves the best chance of success.”
Mr Podesta said investors had also maintained a considerable presence in the current market with strong rental returns serving as a major attraction.
REIWA President Damian Collins said Perth’s minor dip in August home values had been expected given continued interest rate pressure. But he said Perth remained buoyant in comparison to other Australian capitals.
“We anticipate there will be fluctuations month-to-month in the overall Perth figure as buyers adjust to interest rates rising, however Western Australia’s strong economy, growing population and housing shortage point to the current growth cycle continuing,” Mr Collins said.
“At a suburb level, reiwa.com data reflects feedback from REIWA agents who continue to report fierce competition for properties and good outcomes for sellers on the ground.”
REIWA has predicted 10% growth in property prices for Perth this year.
If a real estate transaction is on your mind, then speak with our team today.
