CoreLogic has reported a further 0.4% increase in dwelling values for Perth for the month of June.
It’s the seventh consecutive month of price growth and brings total growth to 2.1% for the quarter and 4% for the calendar year, with the median dwelling price now $558,644.
The problem with treating Australian property as a national market
While the major media is full of talk of a ‘national’ slowdown, five out of the eight reported cities recorded price growth in June, with only Sydney (-1.6%), Melbourne (-1.1%) and Hobart (-0.2%) posting falls.
After a slight decrease of -0.1% in May, Canberra returned to positive territory in June recording a 0.3% increase.
So the multi-speed market conditions across Australia continue (no surprise or change there), albeit with CoreLogic reporting a decline for all cities in the trend rate of growth.
So what’s happening here in Perth?
Average days on the market in Perth increased from 14 at the end of May to 16 at the end of June, which is still three days faster than June 2021. In a balanced market, the time to sell is typically 30 to 40 days.
We continue to be optimistic about the Perth market, given that we continue to be the most affordable capital city in Australia, with the lowest unemployment rate and the best-performing state economy.
8595 properties were listed for sale as of 3 July, well below the 12000 to 13000 considered to be market equilibrium. REIWA believes conditions are such that the market can still achieve their predicted 10% growth for 2022.
And in the inner north?
Here at Red Fox, we finished the June quarter with only one less sale than our record December 2021 quarter, smashing our previous best June sales quarter by a whopping 75%. It was a massive result, and we’ve certainly been kept busy.
Locally we’re seeing continued strong demand for quality houses, with buyer demand outstripping supply. The multi-residential market continues to be more subdued, with a widening gap between house and unit price recovery.
It’s interesting to note that CoreLogic reports that 90.9% of Perth houses are now selling for a profit versus only 65.6% of units. The graph below, taken from the recent CoreLogic Pain and Gain report, illustrates the disparity in performance between the two.
The rental market
Perth’s median rent in June remained unchanged from May at $470 per week.
There were 2,296 properties for rent on reiwa.com at the end of June, 0.5 per cent more than at the end of May.
Despite that slight increase, rental shortages continue to be a significant issue here in WA. REIWA Agents continue to report that there are not enough available rentals to meet tenant demand, and there are concerns that plans to amend the Residential Tenancies Act will exacerbate the issue.
The State Government will need to tread very carefully with its reforms or risk further impacting the already under performing level of investor demand.
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For a no-obligation, confidential chat to gauge where your property might sit in the current market and run through your options, call Nat now on 0405 812 273 – we’d love to help.