Sunset Coast Life September in focus update
PERTH REAL
Perth market remains hot as buyers compete over fewer listings.
The days of Perth property bargains are over and buyers who really want a home need to put their best foot forward or they’ll miss out, property experts have warned.
Property advisory firm Mitchell Residential & Commercial said Perth buyers were being driven by a serious fear-of-missing-out (FOMO), similar to conditions seen about 18 months to two years ago.
“Particularly for single houses in that mid-point price range from $600,000 up to $1.5 million to $1.6 million – that’s the real hot spot,”
Perth home prices have jumped 9.2% in the past 12 months.
“There’s regularly 60-plus groups through a home, and you’ll get five to ten offers, and that’s certainly far more common in the market at the moment.”
Advice to home hunters competing with multiple offers is to reduce their buying conditions, obtain bridging finance if necessary, and consider negotiating a long settlement to allow time to sell their current home.
“So given the population is up 40%, 50% since then, pro rata it’s even worse – it’s a real problem,” he said.
“We’re a long way behind just keeping up with new demand, let alone backfilling about 14,000 or 15,000 houses short.
“Across the state, we’re pretty close to 20,000 short of what we need for a balanced market. So we certainly think prices and rents are going to have to continue to rise.”
The latest PropTrack Listings Report shows the number of new homes listed for sale in Perth during August was down 19.4% on year, with total housing stock down 3.4% compared to a year earlier.
REA Group Listings Report
Bill Dimou, Raine & Horne Group network performance manager in SA, WA and NT, said coupled with low stock, homes were not on the market for long, selling on average in about 15 days.
“There’s no doubt when properties are low, when someone wants to sell a property, they know they probably will get a premium price,” he said.
“But at the same time, they may not be able to find a property that they want, unless they’re going to pay a premium on the new property.
“But if you are someone who just wants to sell a property and offload it, then you’re going to do very well.”
Sellers remain cautious as they consider whether they’ll be able to find another home within a reasonable timeframe.
Mr Dimou said in the current market some sellers had unrealistically high expectations of what buyers will pay for their property.
“I think that’s where they need a good agent to work with that will give them more of a realistic price of what they could get,” he said.
“Because at the end of the day the market will decide what the value of the property is.”
Perth home prices continue to rise
Perth home prices rose a further 0.6% in August to $865,000. Over the past 12 months property prices have jumped 9.2% according to PropTrack.
While conditions have slightly cooled from peak levels seen last year, REA Group senior economist Anne Flaherty said by no means was the Perth market significantly slowing down and it was still a strong performer.
With a shortage of properties up for sale, coupled with a tight rental market, Ms Flaherty said people in a situation where they might need to rent in between selling and buying a new home was proving a barrier in making the move to list their home for sale.
“For people who are not in a situation where they’re selling and buying in the same market, some might choose to delay selling to maximise the value at which they can sell the property for,” she said.
Investment market fundamentals remain strong
Ms Flaherty said while the investor market has cooled from last year’s levels, there was still reasonably strong investor activity.
“I think certainly some investors may feel as though Perth is a very competitive market right now and price growth has been very significant recently so that might lead to a bit of a cool off but having said that the fundamentals of the Perth market are still really strong,” she said.
While fewer interstate investors are circling Perth, local investors remain active.
“Prices are likely to continue to rise, there is certainly a shortfall in new housing supply which is going to underpin the market or a while so I think it’s definitely going to continue to attract investors.”
Mr Collins said while there were less east coast investors buying in Perth than what took place a couple of years ago, there were still many locals choosing to buy investment properties.
He said if economic conditions of population growth remained similar, the Perth market still had a bit of a “run to go”.
Solutions to the housing shortage
New dwelling approvals for WA during the last 12 months to July increased 28% compared to the previous year, which Ms Flaherty said was a positive sign for new developments in Perth.
“So most of that development is house-and-land – so properties in a lot of new areas – and that’s good because it is helping increase the options out there for people to buy, and that also leads to higher listings down the road,” she said.
“But of course, the dwelling approval, it’s not even being built yet, so there is absolutely a lag.
“But it is really positive to see that there’s a big increase in new houses coming, but it’s going to take a bit of time flow through.”
Mr Collins said Perth had many Baby Boomers with no children at home, who were living in four bedroom, two bathroom homes they longer needed.
A short term solution to alleviate the single level house demand, was stamp duty exemptions for downsizers.
“Even if it’s only for a couple of years that would certainly help those people saving them $30,000 – $40,000 so they can get into a villa/ townhouse,” he said.
“That would free up these single homes for the families that are looking for them.
“That’s going to help short term but in the long run, barring a significant economic downturn or significant cut in migration, we’re going to be years and years away from catching up.”
Record Low Listings Fuel Price Growth
As we step into Spring, we’re looking back at an August that has set the scene for a dynamic Perth property market. The headline story is unmistakable: the number of properties for sale has plummeted to a new record low, creating intense competition among buyers and continuing to drive prices upward.
Here’s our breakdown of the key trends from August and what they mean for you.
Listings Hit Rock Bottom
The most significant factor shaping our market right now is the critical shortage of properties for sale. At the end of August, active listings on reiwa.com fell to an all-time low of just 2,981.
To put that in perspective:
That’s a 10.4% drop from July.
It’s a huge 18.3% lower than this time last year.
This unprecedented squeeze is the result of a quieter-than-usual Winter for new listings, combined with persistent and strong buyer demand. Many potential sellers, who are also looking to buy, have been hesitant to list their homes in such a competitive environment. We are even seeing some sellers list with the condition that the sale is subject to them finding a new home first.
Good news is on the horizon! Our agents are reporting a build-up of activity, with many homeowners preparing to launch their properties this Spring. We anticipate a much-needed boost in new listings over the coming warmer months.
Prices Continue to Climb
The intense imbalance between supply and demand has had a clear impact on prices, which continued their steady ascent in August.
Perth’s Median House Price: Climbed to $800,000, a 14.3% increase compared to August 2024.
Perth’s Median Unit Price: Reached $552,500, an even more impressive 17.8% jump from a year ago.
Top Suburbs for House Price Growth in August:
Palmyra: Up 2.8% to $1,100,000
Stirling: Up 1.9% to $1,350,000
Applecross: Up 1.3% to $2,765,000
Jindalee: Up 1.3% to $886,000
Aveley: Up 1.2% to $759,000
Blink and You’ll Miss It: Homes Selling at Lightning Speed
With so few homes available, buyers are acting with incredible speed. That sense of “Fear of Missing Out” (FOMO) has returned, pushing the median time on market back to the rapid pace we saw this time last year.
Houses: Sold in a median of just 10 days.
Units: Were even faster, selling in a median of 9 days.
Perth’s Fastest Selling Suburbs in August:
4 Days: Brabham
5 Days: Treeby, Mirrabooka, Hammond Park, Alkimos
6 Days: Quinns Rocks, Parmelia, Melville, Butler
A Look at the Rental Market
Perth’s rental market remains tight, with a notable increase in house rents during August.
The median house rent rose 2.2% to $700 per week – that’s 7.7% higher than a year ago.
The median unit rent held firm at $650 per week.
Rental stock remains very low at just 2,261 available properties, and homes leased in a swift median of 16 days.
What This Means for You
For Sellers: The market conditions are exceptional. With record-low competition and sky-high buyer demand, you are in the strongest possible position to achieve a fantastic result. Listing now, ahead of the anticipated Spring rush, could be a very strategic move.
For Buyers: The market is challenging, and preparation is everything. Have your finances pre-approved and be ready to move quickly. Aligning with an experienced agent who has insight into upcoming and off-market properties can give you a crucial competitive edge.
For Landlords: The outlook for your investment remains excellent. Strong demand, rising rents for houses, and quick leasing times underscore the strength of the Perth rental market.
In a market this fast-paced and complex, expert advice is more valuable than ever. Whether you’re planning your next move or looking to maximise your investment, our team is ready to help. Contact us today for a confidential chat about your property goals.
Data reveals a dynamic and fast-moving Perth property market, with a significant surge in sales activity and a continued tightening of available listings. Here’s a breakdown of the key trends you need to know.
Sales Transactions Experience a Major Boost
The Perth market was buzzing with activity last week, as sales transactions jumped by an impressive 13.9%. Our fellow REIWA members reported a total of 887 sales, showcasing strong buyer confidence across the board.
When we look closer, the growth is widespread:
House sales increased by 7.7%
Unit sales saw an 8.3% rise
Land sales skyrocketed by a remarkable 67.1%
The suburbs leading the charge in sales activity were:
Maylands (15)
Perth (14)
Balga (13)
East Perth (13)
Rockingham (13)
The market catered to all ends of the spectrum, with the highest sale recorded in South Perth at $2,950,000 and the most accessible sale in Furnissdale at $289,000.
Available Properties for Sale Continue to Decline
On the supply side, the number of properties available for sale in Perth dipped again, finishing the week at 2,929. This is a 0.4% decrease from the week prior.
While listings for houses and units saw minor increases (1.4% and 1.8% respectively), a sharp 9.4% drop in available land for sale drove the overall figure down.
Looking at the bigger picture, the trend is clear: supply remains tight. The total number of properties for sale is 6.9% lower than four weeks ago and a substantial 26.9% lower than this time last year. For sellers, this highlights a fantastic opportunity to stand out in a market with limited competition.
A Snapshot of the Perth Rental Market
Perth’s rental market remains competitive. The number of available properties for rent decreased by 1.3% last week to 2,121. While this is 5.1% lower than a month ago, it’s interesting to note that rental stock is actually 4.4% higher than it was a year ago.
The most in-demand suburbs for renters last month:
Baldivis (29)
East Perth (20)
Perth (17)
Maylands (15)
Alkimos (14)
Leasing activity saw 674 properties leased, which is a slight dip from the previous week but represents a 7.7% increase compared to the same period last year, indicating sustained demand from tenants.
What Does This Mean for You?
Whether you are buying, selling, or investing, these figures point to a robust market with high demand and limited supply. Navigating these conditions requires expert guidance. If you’d like to discuss how you can make the most of the current market, please get in touch with our team today!
