- Perth's home value index increased by 0.4% in December
- The median house sale price is now $520,000
- Applecross recorded the largest increase of any suburb in its median house sale price
Without a doubt, 2021 was a significant year for the Perth property market, which had been on the decline for much of the 2010’s.
CoreLogic data has revealed that home values in Perth increased by 13.1% during the 2021 calendar year – good for Perth property owners, according to REIWA President Damian Collins.
“2021 saw a remarkable resurgence in the Perth property market, with low stock levels and strong buyer demand fuelling price growth,” said Mr Collins.
“We anticipate another healthy year of price growth ahead, driven by an increase in migration once borders open which will sustain the demand for property in Perth.”
The growth, like most capital city markets, slowed late last year.
During December, Perth’s home value index increased by 0.4% taking the median house sale price to $520,000.
“At a suburb level, December was another strong month, with 83 suburbs recording price growth,” Mr Collins added.
The top-performing suburbs last month were a mixed bag.
Topping the list was the leafy wealthy riverside suburb of Applecross which saw its median house sale price increase by 6.2% to $1.7 million. This was followed by Kalamunda, nestled in the Perth Hills, which saw a 4.9% rise to $710,000. Next was Wannanup, south of Mandurah, which recorded 3.4% growth to $585,000 followed by Mandurah itself, up by 3.2% to $310,000.
Other suburbs performing well included Beckenham, Cooloongup, Kardinya, East Victoria Park, Doubleview and Safety Bay.
Listings down; time on market stable
By the end of December, there were 8,511 properties for sale, 7% below November, according to reiwa.com.
However, this is in line with the usual end of year trend.
“We saw a notable decline in listings for sale at the end of December compared to November, which is very typical for this time of year as sellers choose to defer listings over the holiday period.”
Damian Collins, REIWA President
Annualised, reiwa.com data shows that listings were 4% higher last month than December 2020.
In terms of time on the market, the median time to sell a house in Perth didn’t change during the end of the year, remaining at 14 days in December. This is seven days faster than December 2020/
“Properties are selling very fast in Perth, with buyers needing to act quickly and competitively to ensure they secure a property,” Mr Collins said.
Fast-selling suburbs during December included Kingsley (six days), followed by Coolbellup, Floreat, Greenwood and Heathridge (all seven days).
Bull Creek, Greenfield, Leeming, Ocean Reed and Tapping also recorded fast median selling times.
Small increase for rents; still affordable
During December, Perth’s median rent rose by $5 to $445 per week. Despite this increase, rents remain more affordable than they did back in 2014 and are among the most affordable nationally.
Balcatta and Aubin Grove both recorded the largest increases in median rent, up $30 each to $450 and $480 per week respectively.
Rivervale, Waikiki and Yanchep also recorded a similar increase.
The median time to lease a rental remained at 16 days during December. In Secret Harbour and Wellard, the median leasing time is 12 days – the fastest in Perth – followed by Innaloo, Kelmscott and Hamilton Hill at 13 days.
However, rental stock continues to decline with just 1,864 properties for rent on reiwa.com as of the end of last month.
“The rental shortage continues to be the biggest issue facing the Perth rental market. We need more investors in the market to help keep up with tenant demand, which will only increase once borders open and migration resumes,” Mr Collins said.
“It is critical that the WA Government does not make major changes to the Residential Tenancies Act that will discourage property investment in WA at a time when we desperately need an influx of rental stock.”
