- New listings in Perth decrease 22% in April
- Strong population growth is intensifying Perth's housing crisis
- New listings typically experience a seasonal low in April
The supply of new Perth listings fell in April, making life tough for homebuyers; a quickly growing population is also adding to the challenge of securing a home, adding yet more demand to an already tight market.
According to SQM Research, new listings across Perth fell 22% last month to be down 25.3% over the course of the year.
This has seen the total figure of properties available for sale fall 9.8% from March, marking a 15.5% decrease compared to the same time last year.
Perth-based buyer’s agent Peter Gavalas, from Resolve Property Solutions, said the distinct lack of sellers in the market was wreaking havoc with homebuyers’ plans to get into the market.
“With fewer options on the table, many buyers are struggling to find properties that meet their needs,” said Gavalas.
“And when they do, the increased competition means they generally have less room to negotiate on price, creating a perfect storm for homebuyers.”
Total Listings – Perth
New listings down nationwide
The data showed that new listings fell across the country over April on the back of a shorter month.
Managing Director of SQM Research, Louis Christopher, said April is typically a month that does record falls in listings activity, primarily due to the multiple public and school holiday periods.
“The falls appear to be greater than normal for this time of year,” said Christopher.
“The corresponding large falls in new listings combined with an uncharacteristic fall in older listings suggests some vendor caution selling at this point in time.
“And those vendors who are on the market want more for their property as asking prices rose again for the month, though we note weakness in the regions.”
SQM research found that old listings across Perth also fell in April by 4.9% but are now up 7.4% in the past 12 months.
There was also a fall in distressed selling activity across Western Australia which was down 17.1% last month.
At the same time, Perth home prices bounced back in April, rising 0.6% according to the latest data from CoreLogic.
Immigration causing the market to tighten
Gavalas said that while the recent announcements by the state government to attract more skilled migrants as well as international students should hopefully alleviate the skills shortages, it is likely to put further pressure on the housing market.
“The shortage of fresh stock isn’t just impacting owner-occupiers but is also creating challenges for investors, spelling further trouble for the city’s rental market.”
The vacancy rate in Perth held steady at 0.4% in April, making it one of the most competitive cities for potential tenants, according to Domain.
According to Christopher, there will likely be a rebound in new listings in May.
“The key will be if we record another fall in older stock, as that will confirm to us buyer activity has risen.”
