- Home buyers are prioritising affordability, with all of the top 10 fastest selling suburbs recording prices well below the median for Perth.
- Median house prices rose 4.6% to $555,000.
- Unit prices declined over the financial year by 3.2%.
The Real Estate Institute of Western Australia (REIWA) has revealed that the 2022-23 financial year was stellar for Perth’s property market, breaking new records for house prices, the time it takes to sell a property, rental vacancy rates, and rent prices.
Housing market strong despite cash rate pain
REIWA CEO, Cath Hart, observed a continued resilience in the Perth real estate market across the financial year.
“Perth [emerged] as the only capital city to record moderate price growth over the financial year, despite constant interest rate rises,” said Hart.
The four drivers of this result included excellent employment figures, higher than average wages, lower than than average mortgages, and a strong economy.
“While the rate rises have certainly impacted household spending, many people have been able to adjust to the increase in their repayments.
“Currently, we’re not seeing an increase in mortgagee sales advertised on www.reiwa.com, and we’re advised banks are working with their customers to help prevent them experiencing hardship.”
Although Perth’s housing market enjoyed solid growth this financial year, with median house prices increasing by 4.6% to a record $555,000, units underperformed; the median unit price dropped 3.2% to $399,000.
Top 10 suburbs for median price growth (houses)
| Rank | Suburb | Annual House Sale Price | Change in Annual House Price | Median Selling Days |
|---|---|---|---|---|
| 1 | Winthrop | $1,250,000 | 25.3% | 15 |
| 2 | Middle Swan | $413,500 | 21.6% | 12 |
| 3 | Bullsbrook | $462,500 | 20.1% | 15 |
| 4 | Lathlain | $940,000 | 19.4% | 43 |
| 5 | Parmelia | $375,500 | 19.2% | 8 |
| 6 | Trigg | $1,770,000 | 18.0% | 18 |
| 7 | South Perth | $1,790,000 | 17.4% | 28 |
| 8 | Coodanup | $388,000 | 17.0% | 14 |
| 9 | Orelia | $378,888 | 16.6% | 6 |
| 10 | Cooloongup | $420,845 | 16.4% | 7 |
Source: REIWA.
Winthrop was the top performer this year, with the southern suburb recording a 25.3% increase in its median annual price, and an annual house sale price of $1.25 million.
Growth driven by affordability
Hart said there are key differences between the top 10 suburbs for price growth between this and last financial year.
“Six of the suburbs in this year’s top 10 were under the median house price whereas last year none were under the median house price and nine were priced over $1 million.
“All the suburbs on last year’s list recorded growth of more than 26%, while this year none saw that level of growth and only three recorded growth over 20%.
“The WA market has seen moderate growth overall and very strong growth in some suburbs, however, the rate of growth has slowed over the past 12 months.
“It’s not a concern, as steady growth is preferable to significant jumps in prices.”
Cath Hart, REIWA
“What I would say to people who look at their suburb and perhaps notice a decline in its median price this year is to look back over previous years. It may have seen exceptional growth a year ago and is just coming down off a high.”
Bibra Lake posted the best gains in the unit market, with its median annual price surging by 32.6% to $315,000. The runner-up in the top 10 suburbs for unit price growth was Booragoon, which had an equally impressive growth of 31%.
Top 10 suburbs for median price growth (units)
| Rank | Suburb | Annual Unit Sale Price | Change in Annual Unit Price | Median Selling Days |
|---|---|---|---|---|
| 1 | Bibra Lake | $315,000 | 32.6% | 15 |
| 2 | Booragoon | $687,500 | 31.0% | 51 |
| 3 | Erskine | $385,000 | 24.2% | 17 |
| 4 | Mount Pleasant | $735,000 | 20.5% | 31 |
| 5 | Crawley | $670,000 | 16.5% | 44 |
| 6 | Orelia | $192,000 | 16.4% | 22 |
| 7 | Baldivis | $360,000 | 14.5% | 12 |
| 8 | Burswood | $655,000 | 13.9% | 38 |
| 9 | Melville | $567,500 | 13.6% | 29 |
| 10 | Balga | $300,000 | 13.4% | 18 |
Source: REIWA.
Similarly to houses, many of the top 10 performing suburbs for unit price growth had median unit prices below Perth’s median.
Hart commented that 2022-23 saw houses sell hastily — June saw a new monthly record of a median 10 days on market. In Leda, homes were sold in a chart-topping median of five days over the financial year.
Fastest selling suburbs (houses)
| Rank | Suburb | Annual House Sale Price | Change in Annual House Price | Median Selling Days |
|---|---|---|---|---|
| 1 | Leda | $408,000 | 14.9% | 5 |
| 2 | Merriwa | $445,000 | 15.1% | 6 |
| 3 | Orelia | $378,888 | 16.6% | 6 |
| 4 | Cooloongup | $420,845 | 16.4% | 7 |
| 5 | Greenfields | $389,000 | 14.4% | 7 |
| 6 | Brookdale | $372,500 | 16.0% | 8 |
| 7 | Camillo | $355,000 | 16.4% | 8 |
| 8 | Hillman | $382,500 | 14.5% | 8 |
| 9 | Parmelia | $375,500 | 19.2% | 8 |
| 10 | Seville Grove | $415,000 | 12.0% | 8 |
Source: REIWA.
“Affordability was also a focus for buyers in 2022-23 with the end-of-year data revealing that all of the top 10 fastest selling suburbs were well below the Perth median house price,” said Hart.
“It’s a big change from last year’s top 10, where all the suburbs were over the Perth median house price at that time – the rise in interest rates has cleared played a role in this trend.
“While buyers have acted swiftly when they found a suitable house, they were also being prudent.
“They’ve seen their borrowing capacity reduced significantly in the past year, so this outcome signals they’re factoring in the possibility of more rate rises and are spending wisely.”
With units sold in a median of 12 days on the market in the suburb, Balvidis was the fastest-selling suburb for units.
Fastest selling suburbs (units)
| Rank | Suburb | Annual Unit Sale Price | Change in Annual Unit Price | Selling Days |
|---|---|---|---|---|
| 1 | Baldivis | $360,000 | 14.5% | 12 |
| 2 | Palmyra | $453,500 | 4.3% | 14 |
| 3 | Churchlands | $395,000 | -1.2% | 15 |
| 4 | Bibra Lake | $315,000 | 32.6% | 15 |
| 5 | Noranda | $355,000 | 9.2% | 16 |
| 6 | Bayswater | $243,500 | -14.6% | 16 |
| 7 | Joondanna | $390,000 | 2.3% | 16 |
| 8 | Cottesloe | $795,000 | -13.1% | 17 |
| 9 | Shenton Park | $460,000 | -11.1% | 17 |
| 10 | Erskine | $385,000 | 24.2% | 17 |
Source: REIWA.
