Positive Perth property market shines despite dips in other states
Perth’s solid property market is countering the trend of the country’s two biggest cities, as Sydney and Melbourne fell into negative territory for the first quarter since COVID lockdowns in 2020.
The latest CoreLogic Hedonic Home Value Index shows Perth was one of just four Australian capitals to record price growth of more than 1% in April.
Perth property prices grew by 1.1% last month, resulting in an annual boost of 6.7%. The median dwelling price is now $552,128.
Mont Property Managing Director Matthew Podesta said while speculation about the market continued, Perth had held steady and there were still significant gains still to be made.
“Despite the initial sentiment changing with speculation about the market softening and interest rate rises, it seems that WA really is maintaining its reputation as its own separate state,” Mr Podesta said.
“The market is still robust, there is significant buyer activity and multiple offers coming in. People are still committed to wanting to buy, albeit in a slightly more cautious and calculated way.
“In the mid to high end, we are still seeing discerning buyers looking to buy, invest and upgrade. Interest rates are still historically low and now is the time to take advantage of the affordable rates.”
Real Estate Institute of WA President Damian Collins said after another steady month, Perth was on track to achieve the predicted 10% price growth this calendar year.
“The Perth property market remains in a very good position for continued price growth. Even with interest rate rises…REIWA does not anticipate this will adversely impact our local market,” Mr Collins said.
“With low levels of stock for sale and building completions still sluggish, continued strong demand from buyers suggest the Perth residential sales market will be buoyant for some time.”
“Listings for sale remain low across Perth, which is fuelling competition amongst buyers and putting upward pressure on prices. We expect to see more properties come to market as interest rates rise, but not enough to dampen demand.”
Mr Collins said median rent prices lifted by $10 to $460 a week in April – the highest median rent price Perth has recorded, which would be welcome news for investors.
CoreLogic Research Director Tim Lawless said Perth real estate had gathered steam since late last year and housing values were up 2.4% in the three months to April, compared with the recent lull late last year when the quarterly trend fell to 0.4%.
“A rebound in migration rates as state and international borders reopened could partially explain the renewed exuberance, along with persistently low advertised stock levels and strong economic conditions,” Mr Lawless said.
“While Australian Bureau of Statistics internal migration data by greater capital city is currently only reported to June 2021, the data points to a vast uplift in internal migration to Perth for the year (6468), a substantial turn-around from the previous four-year average (-3735).”