Units are outselling houses over west, with Perth unit sales having risen by more than 50 per cent in the past year alone.
Units sales across Perth soared by 58 per cent in the first quarter of 2021, compared to a year earlier, reaching their highest level since 2013, figures from the Real Estate Institute of Western Australia (REIWA) revealed.
According to REIWA president Damian Collins, Perth’s extraordinary growth in unit sales has ultimately outpaced house sales, which added only 35 per cent over the same period.
“Several factors are contributing to this. With the shortage of houses for sale, more people are considering a unit as a place to live,” he said.
“Apartments, townhouses and units offer plenty of lifestyle appeal and convenience, as they are generally lower maintenance and positioned closer to the CBD and other amenities.
“We have also started to see investors return to the market and many prefer to buy units.”
Also contributing to the surge in unit sales is Perth’s affordability, the president noted.
Perth’s median unit price has grown by only 0.5 of a percentage point over the past year — significantly lower than median house price growth at 4 per cent.
Currently, the median price for Perth units sits at $381,750, over $100,000 less than the median house price of $499,000.
During the three months to March 2021, it took an average of 32 days to sell a unit in Perth — 25 days quicker than the same period last year, although still 17 days longer than the median selling time for houses.
Further proving the strength of the unit market, the REIWA data also revealed that while the number of units listed for sale in March 2021 dropped by 16 per cent compared to March 2020, houses still saw a steeper decline at 41 per cent over the same period.
“REIWA is forecasting strong house price growth in 2021,” according to Mr Collins.
“With the rental moratorium over and near record-low vacancy rates, it is likely the strong demand for units will continue throughout the remainder of 2021.”