- While the Perth market typically slows in winter, 65 suburbs are recording growth
- Perth's growth is defying the national trend
- REIWA President predicts price growth to continue if housing and labour shortages are not addressed
As most Australian capitals feel the relief of easing property prices, the Western Australian capital is showing a different trend. Across the Perth region, 65 suburbs recorded a median house price growth in July according to newly released REIWA research.
REIWA President Damian Collins has predicted that ongoing housing and labour shortages are likely to keep pushing Perth’s prices skywards.
“The Perth market typically slows in winter, so it’s pleasing that when we drill down to suburb level, a large number are still seeing growth,” Mr Collins said.
“Western Australia’s strong economy, growing population and affordable housing mean we are in a much better position to manage the increased costs of servicing a loan than our east-coast counterparts.
“We’re also experiencing a housing and labour shortage simultaneously. We have low stock levels and properties are not being built quickly enough,” Mr Collins said.
“For as long as this remains an issue, competition amongst buyers will remain high and prices will continue to rise.”
Damian Collins, REIWA President
Stock on the market in Perth showed little growth over July with 8,592 properties for sale on reiwa.com by the month’s end. This figure is well below the “balanced market” rates, which are around 12,000 to 13,000 listings.
Perth growth defys cash rate hikes
Mr Collins highlighted that the higher home values in Perth are particularly notable given the four consecutive interest rate rises announced by the RBA since May.
“Perth is one of the few capital cities in the country that has seen continued growth in home values since the Reserve Bank of Australia made the decision to increase the cash rate,” Mr Collins said.
According to CoreLogic’s Home Value Index, Perth property prices exhibited a 0.2% month-on-month growth in July. The only other capitals to demonstrate growth were Adelaide (0.4%) and Darwin (0.5%).
Top five booming suburbs
The five suburbs to record the biggest increase in price during July were Brabham (up 10.1% to $333,750), Alkimos (up 4.6% to $371,250), Lakelands (up 4.1% to $385,000), Banksia Grove (up to 3.7% to $420,000) and North Perth (up 3% to $865,500).
Other suburbs to show strong growth were Gosnells, Hammond Park, Southern River, Kelmscott and Langford.
Greater Perth Metropolitan Area
