Perth’s housing market has yet to feel the impacts of the cash rate hike in May as it was able to outperform the bigger cities in terms of price growth.
CoreLogic data showed a 0.6% monthly gain in Perth’s median dwelling value in May to $525,000.
According to Real Estate Institute of Western Australia (REIWA), 64 suburbs recorded price gains in May, contributing to the strong period for the whole state.
North Perth recorded the highest gains among all suburbs, with its median price increasing by 4.5% to $1m. Wembley Downs (up 2.7% to $1.31m), Langford (up 2.6% to $380,000), Wilson (up 2.5% to $610,000), and Bedford (up 2.3% to $750,000) also posted stellar gains during month.
Meadow Springs, Yanchep, Brabham, Kardinya, and Attadale also performed well during the month.
REIWA president Damian Collins said market conditions during the first five months of 2022 had been strong.
“May was another solid month of growth for the Perth property market, which is an encouraging sign that the recent increase to the cash rate has not stifled demand,” he said.
“Based on what we’ve seen so far this year, Perth is on track to achieve REIWA’s forecasted 10% growth by the end of the year.”
Strong demand indicators
Over the past month, listings for sale increased by 6% monthly. However, the volume is 11% lower than during the same month last year.
“We saw a notable increase in listings for sale during May, which is pleasing, however stock levels remain well below the 12,000 to 13,000 figure that we’d expect to see in a balanced market,” Mr Collins said.
In terms of days-on-market, the time it took for properties to get sold was 13 days, similar to the previous month but one day faster than last year.
“We saw a notable increase in listings for sale during May, which is pleasing, however stock levels remain well below the 12,000 to 13,000 figure that we’d expect to see in a balanced market,” Mr Collin said.
Some of the fastest-selling suburbs were Cooloongup (six days), Bedford (seven days), Heathridge (seven days), Melville (seven days) and Waikiki (seven days).
Robust rental demand
Perth’s rental market was also on a roll in May, posting its second consecutive month of rent price growth.
The city’s median rent price increased by $10 to $470 per week in May.
“While market conditions are challenging for tenants, we continue to have the most affordable rental environment in the country,” Mr Collins said.
The suburbs to record the biggest increase in median rent during May were Como (up $40 to $545 per week), Butler (up $15 to $420 per week), Dianella (up $15 to $465 per week), Secret Harbour (up $15 to $475 per week) and Armadale (up $10 to $350 per week).
During the month, it took a median of 16 days to lease a rental property in Perth, faster than a year ago.
Meanwhile, rental listings in Perth went down by 7% monthly and 18% annually in May.
“The rental shortage will not go away without a significant uplift in private investment. We need to ensure property investment is encouraged in Western Australia so that there are enough available rentals to keep up with tenant demand,” Mr Collins said.
Photo by @nathan_hurst on Unsplash.