- June only recorded a 0.2% increase
- Winter typically sees slowdown in buyers activity
- Listings for sale down, rentals stable
According to data released by CoreLogic, home values in Perth increased by 7% during the first half of 2021.
Despite June recording a fairly subdued 0.2% increase, Real Estate Institute of Western Australia (REIWA) President, Damian Collins, said nevertheless, the cumulative level of growth was substantial.
“Although the June price growth rate is the smallest we have experienced this year, it has still been a positive year and brings the year-to-date total growth tally to seven per cent,” said Mr Collins.
“Furthermore, in the last financial year, home values have increased 9.8 per cent in Perth.
“The smaller growth rate recorded in June is also not surprising given we have entered the traditional winter slowdown. In fact, it’s encouraging that even as the colder weather has descended upon us and activity has eased slightly, we are still seeing price growth.”
Damian Collins, REIWA President
“This will hold Perth in good stead as we transition out of winter and into the spring selling season in the coming months.”
According to reiwa.com data, Perth’s median house sale price was $510,000 in June. The data also reveals 84 suburbs recorded significant median sale price growth during the past month.
Parkwood in Peth’s southeast recorded the biggest increase in median sale price over June, up 4.8% to $450,000. The southern suburb of Booragoon came in second, recording 4.1% growth to $825,000.
Mixed bag for listings
Listings for sale were down by 1% at the end of June compared to May.
“We saw a small decline in listings at the end of June compared to May, but compared to three months ago, listings for sale have increased 8.1 per cent. On an annual basis, stock levels remain 13.4 per cent lower than they were at the end of June 2020,” Mr Collins said.
However, listings for rentals are stable and 5.7% higher than three months ago.
“The listing figures for June are encouraging. While we are by no means out of the woods, it’s pleasing that stock levels have started to stabilise and on a three-month basis are improving,” Mr Collins said.
Shelley and Piara Waters recorded the biggest growth in rental listings.
“The Perth vacancy rate is currently at one per cent. We’d like to see that lift to around two to three per cent to restore balance in the market. With investor finance levels starting to rise, we should hopefully see more properties come to market in the second half of the year.
“It is imperative that investors remain an active part of the WA market so there are enough rentals to keep up with tenant demand.
“The outcome of the Residential Tenancies Act review, which is currently underway, needs to be fair for all parties and ensure investors aren’t disincentivised from buying in WA.”
Mr Collins concluded by remarking that although the recent outbreak and subsequent lockdown are “concerning” he believes the impact would be minimal, similar to the previous lockdowns in February and April.
