- September closed out with 4,931 listings.
- Listings figures are down 4.9% from August and down 39.5% from 12 months ago.
- Time on market fell to single figures.
The Perth housing market has hit the lowest listings level in 30 years, according to REIWA. At the end of September, fewer than 5,000 homes were listed.
“The strength of demand was highlighted in the median time to sell a property, which dropped to a record low of nine days for the month,” said REIWA CEO, Cath Hart.
“This saw the number of listings on www.reiwa.com fall to 4,931 at the end of the month. This is 4.9% lower than the final figures for August and 39.5% lower than 12 months ago.”
Cath Hart, REIWA
Median house prices rose to $570,000 in September, making it 5.6% higher than a year ago, and 4.6% higher than the previous 2014-15 record.
While median house prices increased, the median unit price stayed at $400,000. It was 2.4% lower than September 2022 and 2.9% below the previous high of $412,000 set in 2021-22.
Top five suburbs for Perth house price growth in September 2023
| Suburb | Price growth (%) | Average price ($) |
|---|---|---|
| Halls Head | 3.1% | $570,000 |
| Embleton | 2.7% | $620,000 |
| Hillarys | 2.5% | $1,080,000 |
| East Fremantle | 2.5% | $1,672,500 |
| Bassendean | 2.1% | $612,500 |
Source: REIWA.
The recent CoreLogic Home Value Index (HVI) recorded increases for Perth home values across the board, up 1.3% monthly, 3.6% quarterly, and 8.8% annually.
Affordability appeals
Affordable Perth homes were also flying off the market. While the median days on market dipped below double figures to nine, some homes sold in a third of that time.
Fastest selling suburbs for houses in September
| Suburb | Days to sell |
|---|---|
| Dudley Park | 3 |
| Seville Grove | 3 |
| Coodanup | 4 |
| Cooloongup | 4 |
| Secret Harbour | 4 |
| Armadale | 5 |
| Tapping | 5 |
| Butler | 5 |
| Caversham | 5 |
| Greenfields | 5 |
Source: REIWA.
“It’s interesting to see that, with the exception of Tapping, these suburbs have a median house price below the Perth median,” said Hart.
“It suggests affordability is important and buyers are acting quickly when they see value.
“These suburbs also offer rental yields between 5% and 7%, which make them very attractive to investors.”
Rental pain continues as prices remain at record highs
The median weekly dwelling rent was $580 per week, according to REIWA, unchanged from the final figure for August and 17.2% higher than a year ago.
Median house rents were stable at $600, with median unit rents also stable, at $550.
“Stability is very welcome, but market conditions suggest more increases are likely in the coming months.”
“WA is experiencing strong demand and there is a limited supply of rentals available. The significant imbalance between supply and demand is putting pressure on prices and this is unlikely to change in the near future,” said Hart.
Largest median rent growth for September
| Suburb | Median rent price (September) | Percentage growth |
|---|---|---|
| Highgate | $665 per week | 30% |
| Inglewood | $630 per week | 26% |
| Greenwood | $720 per week | 21% |
| Wembley | $540 per week | 20% |
| Bentley | $540 per week | 19% |
Source: REIWA.
A mere 1,653 properties were available for rent on www.reiwa.com at the end of September, rising slightly from August, but still 22.2% lower than three months ago and 4.1% below September 2022 levels.
“Based on previous trends, we can expect listings to remain low for the remainder of the year,” said Hart.
The median leasing time was 14 days during September, one day faster than August.
Hart said while WA was one of the more affordable places in the country for both home buyers and renters, rising interest rates and rents had placed significant financial stress on households.
“The Reserve Bank of Australia’s decision to leave interest rates on hold will be welcomed by mortgage holders, but repayments on the average mortgage in WA have increased 48% since rates started rising, meanwhile the median dwelling rent has increased 23%.
“Supply is a significant issue facing the market and impacting affordability.
“We need to maintain a strong level of new home building starts and ensure we have a legislative environment that encourages investment to alleviate the gap between supply and demand that is driving house and rent prices to new records.”
