Slim pickings: Competitive buyers fuel property price growth as listing numbers plunge
Record low listing numbers are driving sales prices to new highs as feisty buyer competition pays dividends for vendors along Perth’s southern riverfront corridor.
Mont Property Managing Director Matthew Podesta said homes at the premium end of the market were attracting strong interest despite concerns at 12 interest rate hikes in the past year, putting the base rate at an 11-year high.
Real Estate Institute of Western Australia data shows the number of properties for sale in Perth is the lowest since mid-2010.
Stock levels fell to 5885 at the end of May – almost 9% lower than the number of available properties in April and 29% lower than a year ago.
REIWA statistics also show homes are being snapped up at record pace, with properties selling in a median of 12 days – the fastest since records started in 1998.
Mr Podesta said there was scope for sellers to attract a significant return if they listed their home for sale in the current market.
“What’s clear is that despite all the goings on in the Australian market, despite the increases in interest rates and despite the lack of available stock being at its lowest in 13 years, buyers still want buy,” Mr Podesta said.
“In fact, the appetite for quality homes in Perth’s southern riverfront corridor is incredibly strong and high-end properties are fetching excellent prices.”
Mont has achieved top prices for properties in Applecross, Mount Pleasant, Attadale, Bicton and East Fremantle this year, including several multi-million dollar riverside homes.
REIWA singled out Melville as one of Perth’s top performing suburbs in May, with house prices escalating by 1.3% in the month to a median of $1,002,500.
“WA is continuing to see strong population growth and these people all need somewhere to live,” he said. “Perth is the tightest rental market in the country and with the challenges and delays being faced in the construction industry, more and more buyers are choosing to purchase established homes rather than build.
“The fact remains, buyers will always be attracted to quality homes in great neighbourhoods like ours. Idyllic lifestyle locations will attract strong intertest in any market.”
REIWA Chief Executive Officer Cath Hart said sales had outpaced the number of properties coming to the market for the past two months. Since mid-April the number of sales each week has been 15% higher than the number of weekly new listings.
“Since 2010, sales have usually been 15% to 30% lower than new listings. For sales to be this much higher than new listings is unusual and has only happened a few times in the past 13 years, and never for two months in a row.
“If this continues we can expect the number of properties for sale to decline further.”