Perth is entering a sellers' market, with the latest figures from the Real Estate Institute of Western Australia (REIWA) showing increased demand from buyers and a thinning supply of homes.
In June, Western Australia’s capital clocked its most robust month for property sales since 2015. Perth recorded 3,990 sales transactions in June, representing a 55% increase from May and a 45% increase from the same month last year.
Significantly, land sales in June increased by 289% to 1,471 total sales for the month. The turnout for homes also increased by 15% to 2,519.
Willetton, Thornlie, Girrawheen, Dudley Park, and High Wycombe are the suburbs that recorded the biggest increases in sales over the month.
Damian Collins, president at REIWA, said the spike in property transactions could be due to the fear-of-missing-out phenomenon amongst buyers who are eager to take advantage of the state and federal governments' housing grants.
“The large spike that we have seen in land transactions can be attributed to people fearing that they may miss out on these grants. There is a real possibility that we will run out of titled and completed blocks in the coming months,” he said.
In fact, listings have already gone down by 9% in the month, indicating that the city is close to entering a sellers' market.
Perth's median house price remained unchanged in June at $475,000. However, the median price of land increased by 5% to $250,000.
“During the initial COVID-19 period there was some downside price risk to Perth property prices, however, it now appears that Perth prices will generally hold firm and could even possibly rise. This is, of course, dependent on the economy opening up and remaining open,” Collins said.
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