- Perth home prices grew 1.6% in January 2021 alone, +3.8% over past three months
- Rents are also rising, stock is down, below 3,000 for fifth consecutive month
- Both the Perth sales and rental markets are hottest in the country at the moment
Monthly data from CoreLogic has put Perth at the top of the tree in terms of accelerating property house prices across the nation.
“Properties continue to sell at a faster rate than they did last year, with the median days to sell sitting at just 21 days, down from 43 days in January 2020,” said REIWA President Damian Collins.
“There is little doubt now that the Perth market has swung into the seller’s favour and buyers are needing to act a lot faster to secure a property.”
With just over 8,200 properties on the market currently, and properties selling fast, an under supply exists across Perth, he argued.
“[Listings are] up 1.2 per cent on December, however down 33.3 per cent when compared to the same time last year, which indicates we are significantly below levels seen a year ago, however we expect more sellers will see the benefits of listing their properties now rather than later,” Mr Collins said.
After an “unprecedented sales spike” was recorded in December, house and unit sales were down slightly in January.
“The spike in sales Perth experienced during December was quite unusual, typically we see activity drop off in December and January, before lifting again as we get further into the New Year,” Collins said.
“Despite sales activity trending lower in January, numerous suburbs still saw house sales improve, with the top five selling suburbs including Meadow Springs (up 75 per cent), Yangebup (up 67 per cent), Mandurah (up 67 per cent), Alkimos (up 64 per cent) and Heathridge (up 44 per cent).”
Low rental listings too
Things are becoming tight over on the rental side of the Perth property market as well, with fewer than 3,000 properties available for rent, the fifth consecutive month at these levels.
“There were just 2,826 properties for rent in January 2021, compared to 5,784 in 2020, which is a drastic reduction in stock and we currently have a severe rental shortage,” Mr Collins said.
“While in the short term these conditions will entice investors back to the market, it is imperative the WA Government keep their promise to end the rental moratorium on 28 March 2021 to ensure the situation does not worsen.”
The 12-month moratorium makes it harder for Perth landlords from raising rent prices or evicting a tenant if they have difficulty paying rent. This is due to end in March, a few weeks after the state elections.
CoreLogic’s quarterly rental review (December 2020) also showed that Perth had the hottest rental market across the country.
Meanwhile, REIWA data showed the median weekly rent rose to $400 in January.
“The suburbs to experience the most notable increase in rent prices in January were Subiaco, which saw its median rent lift by $20 per week, as well as Thornlie, Alkimos, Morley and Halls Head which all experienced $10 weekly increases in their median rents,” said Collins.
“With the rental stock levels remaining low and expected to do so in the coming months, combined with low interest rates and expected gross yield growth, we will expect investor numbers to increase in the latter end of the year, particularly when the moratorium ends in March.”
Mr Collins did not see the current 5-day snap lockdown having much effect on the property markets.
“With the announcement of the first case of community transmission of COVID-19, there will be a restriction on home opens for five days, but it will have a minimal short-term impact on the market, unless we see a sustained lockdown and a significant economic impact, the property market is likely to continue its strong recovery.”