According to data from www.reiwa.com, active listings in the Perth real estate market reached a record low of 2,981 at the close of August. This marked a 10.4% decrease compared to July and an 18.3% drop from the same time last year.
REIWA President Suzanne Brown attributes this decline to a combination of factors. The traditionally lower number of new listings over the winter months, alongside continued strong demand, has contributed to the reduction in active listings.
“The challenge of maintaining homes in market-ready condition during the winter months often discourages sellers, but the decline in listings has been steeper than anticipated,” Ms. Brown explained. “Additionally, with the unusually wet conditions in August and cautious seller sentiment, new listings have remained limited.”
She also highlighted that many sellers are navigating challenges related to buying a new home, particularly those selling subject to sale, which has led to a growing trend of sellers listing properties with the condition that they secure a suitable home first.
The imbalance between new listings and buyer demand has resulted in rapid property sales and a significant decline in active listings. However, there is some positive news on the horizon, as many members are reporting that sellers are preparing to list properties for the spring market, which is expected to bring an increase in new listings in the coming months.
Perth Sales Market Update
The median house sale price in Perth rose by 0.4% in August, reaching $800,000, marking a 14.3% increase compared to the same period in 2024. Similarly, the median sale price for units also saw a rise, climbing by 0.5% to $552,500, a 17.8% increase from August 2024.
Ms. Brown commented, “Given the current market conditions, it is anticipated that prices will continue to rise, although the exact rate of increase remains to be seen.”
The suburbs experiencing the most significant house price growth in August include Palmyra (up 2.8% to $1,100,000), Stirling (up 1.9% to $1,350,000), and Applecross (up 1.3% to $2,765,000). Other notable performers include Jindalee and Aveley, which saw increases of 1.3% and 1.2%, respectively.
Time on Market
Homes in Perth sold more quickly in August, with the median time to sell a house dropping to 10 days, which is two days faster than July and consistent with the same period last year. Units sold in a median of 9 days, a reduction of three days from July and one day faster than August 2024.
Ms. Brown noted that the high competition for homes and the decline in new listings have revived a sense of “Fear of Missing Out” (FOMO) in the market. “As a result, properties are selling faster, reflecting the conditions we saw in the first half of 2024,” she said.
The fastest-selling suburbs in August included Brabham (4 days), Treeby, Mirrabooka, Hammond Park, and Alkimos (5 days), followed by Quinns Rocks, Parmelia, Melville, and Butler (6 days).
Perth Rental Market Update
The Perth rental market remained stable in August, with the median rent price for dwellings holding steady at $680 per week, a 4.6% increase from the previous year. However, the median rent for houses saw a 2.2% increase month-on-month, rising to $700 per week, which represents a 7.7% increase from August 2024. The median rent for units remained unchanged at $650 per week, reflecting a 4.6% year-on-year increase.
Ms. Brown explained that moderate rent increases during this time of year are not uncommon. “Typically, we see a slight upward movement in rents as we approach the latter part of the year, due to tightening rental conditions in the lead-up to Christmas,” she said.
Notably, several suburbs experienced significant growth in their median weekly rent, including Claremont (up 8.7% to $815), Doubleview (up 6.7% to $800), and Applecross (up 6.1% to $950).
Listings for Rent
At the end of August, there were 2,261 properties available for rent on www.reiwa.com, representing a slight decrease of 0.1% compared to July, but a 3.1% increase compared to the same time last year.
Median Leasing Times
The median leasing time for homes in Perth was 16 days in August, which was one day faster than July and three days faster than the same period last year.
