PERTH’S long-awaited property market recovery appears to finally be here, with the latest Real Estate Institute of WA data showing properties are selling in the fastest time in 14 years.
Homes took a median 22 days to sell in November, 17 days less than the same time last year and the quickest since September 2006.
REIWA president Damian Collins said the residential sales market had significantly improved in the latter half of 2020, creating the ideal conditions for those looking to sell.
“The demand for quality stock is evident, with properties selling at the same speed as they did 14 years ago when Perth was in a property boom,” he said.
“In addition, the level of discounting has reduced to 32 per cent of all transactions, compared to 49 per cent in November 2019.
“With listings for sale down 1.3 per cent in November compared to the previous month, and 28.7 per cent lower than November 2019, it’s clear that if you are looking to sell, there hasn’t been a better time for many years.”
Prices are also on the up — CoreLogic’s latest home value index showed Perth’s median dwelling value increased 1.1 per cent in November, the fourth consecutive month of growth and the largest increase over that time.
Values rose 1.9 per cent during the three-month period and were up 0.8 per cent from November 2019, the first positive annual change for some time.
“Breaking it down at the suburb level, reiwa.com data shows 50 per cent of suburbs experienced an increase in median sale price and 29 per cent saw a stabilised median in November,” Mr Collins said.
“Kelmscott saw the biggest increase to its median with a seven per cent increase to $353,000, which was followed by Hillarys (up 6.8 per cent), Rockingham (up 4.1 per cent), Marangaroo (up 3.8 per cent) and Armadale (up 3.6 per cent).”
There was some positive news for tenants looking for find a property in Perth’s tight rental market, with listings up 3.7 per cent in November compared to October, but levels were still 52 per cent lower than the same time last year.
Mr Collins said with only 2889 properties for lease on reiwa.com, it was the third month in a row that stock levels were under 3000.
“Due to limited rental stock and the vacancy rate sitting at 0.95 per cent, rents have continued to increase in November with the median weekly rent now sitting at $390 per week,” Mr Collins said.
“Fremantle and Mandurah were the top performing suburbs with a 3.7 per cent increase, was closely followed by Huntingdale (up 3.4 per cent), Subiaco (up three per cent) and Nollamara (up 2.9 per cent).
“With investor interest on the increase due to the rental shortage, this will help boost stock levels and help keep rent increases at reasonable levels, however it’s crucial the rental moratorium ends as promised in March 2021.”