The median time to sell a property in Perth has surpassed a record from 15 years ago, the Real Estate Institute of Western Australia (REIWA) has found.
Perth properties now sell at an average of 17 days, almost four weeks or 26 days faster than they were in March 2020 and the quickest rate since 2006.
According to REIWA president Damian Collins, this result highlighted Perth’s growth into a seller’s market, with more buyers in competition to secure a property.
“The turnaround we are witnessing in the Perth property market is quite remarkable,” Mr Collins commented.
Meanwhile, listings went up by 5.1 per cent to 8,247 properties from February 2021 to March 2021, but were down by 32.9 per cent when compared with the same time last year.
“While there are still 4,000 fewer listings for sale than there were at the end of March 2020, the increase in the number of properties for sale in March 2021 is an encouraging trend,” he said.
“It appears Perth property owners are increasingly recognising there is excellent opportunity available to sell their home quickly and at a competitive price.”
Additionally, CoreLogic recorded a 1.8 per cent lift in the Perth home value index over March, which marks the seventh consecutive month that the capital city’s home value index has increased. Over the past quarter, the home value index was up by 5 per cent since the start of the year.
As of March 2021, data from the REIWA showed that Perth’s median house sale price sits at $495,000, up from $480,000 in March 2020.
Of the 67 Perth suburbs that recorded an increase in median house sale price in March, the top five were:
1. Cottesloe (up by 5.4 per cent to $1.95 million)
2. Como (up by 4.1 per cent to $895,000)
3. Rockingham (up by 3.8 per cent to $410,000)
4. Lake Coogee (up by 3.5 per cent $587,500)
5. Wannanup (up by 3.4 per cent to $530,000)
Other suburbs that recorded median sale price growth were Yangebup, Duncraig, Claremont, Ballajura and Dudley Park.
Leasing activity in Perth increased by 15.6 per cent in March on the back of tenants and property owners making preparations for the end of the rental moratorium, Mr Collins said.
However, this result remains 18.8 per cent below the leasing activity recorded last year, which is attributed to the rental shortage experienced across the state at the time, the president added.
The median time to lease a rental in Perth during March was 19 days, the same amount of time it took in February, but nine days faster than in March 2020.
“The last time rentals were leased this fast was in June 2013,” according to Mr Collins.
With only 2,722 properties listed for rent at the end of March — down by 1.6 per cent on a monthly basis and 49.9 per cent on a yearly basis and the seventh consecutive month that rental listings were below 3,000 — the president said that Perth “desperately needs an influx of available rental stock”.
“Now that the rental moratorium is over, we should start to see more properties come to market in the coming months, but it’s not going to fix all the problems. We need to incentivise property investment in WA so we can meet the demand for rental housing,” he added.
Currently, Perth’s median rent price sits at $400 a week — the third consecutive month that the capital city held the price.
While it has increased by $40 a week over the last year, it remains $50 lower than it was in 2014. To date, Perth still stands as the most affordable place to rent in Australia.
Among the suburbs with the biggest rent increase in March were Bassendean (up by $15 to $395 per week) and Joondalup (up by $15 to $400 per week).
Strong rent price growth was also witnessed in Butler, Nollamara, Wellard, Cannington, Clarkson, Beckenham, Bentley and Harrisdale — all of which saw their median rents increase by $10 per week over the month.