Perth records strongest annual property value increase
Residential property values rose 0.8% across Australia during August 2023 (CoreLogic, 2023).
All capital cities recorded growth, with Brisbane (1.5%), Adelaide (1.1%) and Sydney (1.1%) recording the strongest monthly rises. Perth dwelling values rose by 2.9% over the past quarter and 4.5% annually, which is the strongest annual rise in the nation. (CoreLogic, 2023)
It took a median of 10 days to sell a property in Perth during August 2023, remaining unchanged from the record low set in the month prior and 8 days faster than the same time last year (REIWA, 2023).
Declining housing supply continues
Properties for sale remain at low levels, decreasing to just 5,131 properties in Perth during the week ending 3 September 2023. This is down from 5,178 recorded four weeks prior and 8,160 in the same week last year. (REIWA, 2023).
The graph below demonstrates the downward trend of stock availability within the Perth market.
Source: REIWA and Momentum Wealth Research
Rental property availability remains low
In August, the downward trend of rental property supply continued, with 1,655 properties available for rent during the week ending 3 September 2023 and a vacancy rate of 0.8%. The median rental dwelling price rose to $575 per week in August – the first rise since March 2023, with the median house price rising to $600 and units to $550 per week. (REIWA, 2023).
The median time to lease a property in August 2023 was 15 days, indicating a one-day improvement from July (REIWA, 2023).
The graph below shows the decline in the number of homes available for rent in Perth and the vacancy rate remaining at record lows and far below what is expected for a balanced market.
Source: REIWA and Momentum Wealth Research
Australia’s inflation is easing
In recent data from the Australian Bureau of Statistics, the inflation rate in Australia marked a decline, moving from 5.4% in June to 4.9% in July. While this indicates a positive shift towards moderating inflation, it’s worth noting that the rate is still above the RBA’s ideal target range of 2-3%. Nonetheless, the RBA’s decision to place the cash rate on hold at its meeting in September will come as a welcome reprieve for mortgage holders.
Source: ABS