March was a month of milestones for Perth’s property market. It continued February’s strong performance and set new benchmarks. Amidst demographic dynamism and a tight squeeze on housing supply, the market showed resilience and fervour.
Find our Red Fox summary below:
Record-Breaking Figures
Perth’s median house price didn’t just grow; it soared to a record $620,000, marking a 2.5% increase that speaks volumes about the market’s robust health, as reported by REIWA (or 1.8% to $687,004 if you follow CoreLogic). The unit market wasn’t far behind, with its median sale price edging up by 1.2% to $420,000.
According to CoreLogic, Perth housing values have risen a whopping 52.9% since the onset of COVID. Don’t we all wish we’d bought back then?!
Population Growth Fuels Demand
The underlying currents shaping this market surge stem from WA’s significant population uptick, now exceeding 2.9 million—a 3.3% leap within a year. With new dwellings failing to keep pace, many people are turning to established homes, intensifying competition and, as a result, prices.
The issue isn’t immigration; West Australian businesses need that workforce; it’s supply.
The Local vs. Investor Dynamic
Despite the buzz around Eastern States investors casting their nets into the WA property pool, the real momentum, according to REIWA is local.
And we agree.
Owner-occupiers with emotional ties to a suburb or trying to get into a sought-after school zone are most often driving up the premium on homes, not out-of-towners, particularly in the inner north suburbs.
Selling at Lightning Speed
Houses changed hands in a median of just eight days in March, mirroring February’s speed and outpacing the previous year’s timeline. The units, too, weren’t far behind, with a median selling time of 10 days.
We’re seeing particularly aggressive tactics from buyers in their quest to secure a property, with offers being made sight unseen before the first home open or immediately after viewings. You snooze, you lose.
Navigating a Seller’s Market
This bustling market landscape presents unique challenges and opportunities. For buyers, it underscores the importance of being organised, being ready to make a quick decision, and utilizing every tool and strategy at your disposal.
Sellers, while benefiting from the quick sale time, face the challenge of finding their next home in this competitive environment before they settle.
Listings and Rentals in Focus
As March wrapped up, active listings dipped to 3,654, highlighting the ongoing supply-demand imbalance. Property is coming onto the market at the same rate as long-term averages; it’s just being snapped up at record speed.
The rental market echoed this trend, with median rents rising to $649 per week, driven by the same demographic and supply factors affecting the sales market.
A Broader Perspective from CoreLogic
Adding depth to the local picture, CoreLogic’s insights reveal a nationwide trend of growth across Australia’s smaller cities, including Perth. The trend reflects a complex interplay of regional resilience, demographic shifts, and evolving buyer and renter dynamics across the continent.
The Essence of March’s Market
March wasn’t just another month for Perth’s property scene; it’s a reflection of the current supply crisis driven by population surging at near record rates.
Navigating this market requires a blend of strategic thinking and adaptability, whether you’re looking to buy, sell, or invest.
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Wanting advice about your own specific home and circumstances? Call me now on 0405 812 273 – we’re here to help.
Red Fox Property Group are ratemyagent real estate Agent of the Year award winners in Mount Lawley, Inglewood and Bedford. We specialise in the suburbs surrounding Beaufort Street and beyond.
