Perth property in prime position

4 November 2023

Perth’s runaway property market outperformed every other Australian capital city in October, netting a 1.6% boost to median real estate values.

The CoreLogic Hedonic Home Value Index, released on Wednesday, shows the surge took the city’s annual growth to 10.8% – the highest in the nation, followed by Sydney at 9%.

The median property price in Perth hit a record high in October of $631,195.

Despite the strong conditions, Perth was the second most affordable capital city by dwelling value, with Darwin ranked as the most affordable.

The CoreLogic report found Perth is also the clear standout for the highest annual rental growth, with a rise of 12.7% for house rents and 16.6% for unit rents over the past year.

Mont Property Managing Director Matthew Podesta said the critical shortage of stock for sale, strong population growth and ultra-competitive rental prospects were was placing upward pressure on prices, with buyers desperate to secure homes in a sparse market.

Remarkably, advertised stock levels in Perth have fallen through spring to 2.1% below levels recorded at the end of winter, according to CoreLogic.

“Perth is so far away from the traditional spring selling season due to the severely low number of properties being listed for sale,” Mr Podesta said.

“What is meant to be a peak time for property sales and abundant listings is currently anything but, and this is having a direct impact on buyer rivalry and prices.

“We have large numbers of buyers engaging with us on a daily basis, keen to know about upcoming opportunities. If ever there was a prime time for vendors to consider selling, it is now. On most occasions, we are achieving sale prices well above expectations.”

CoreLogic’s Research Director Tim Lawless said while a slowdown was anticipated in some markets across Australia, it was highly unlikely for Perth.

“In markets where demand and advertised supply are more evenly balanced, it’s logical to expect price growth to slow down,” Mr Lawless said.

“In other markets such as Perth, where listings are almost 45% below the five-year average while sales activity is almost 25% above average, prices are rising at the fastest pace since March 2021.”

If you are interested in listing your home for sale this peak selling season, speak to the team at Mont.

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