Properties sell at record pace in July
During July, it took a median of just 10 days to sell a property in Perth, continuing the record low that was set in the previous month (REIWA, 2023).
Residential property values across Australia experienced a 0.7% increase in July, with Brisbane (1.4%), Adelaide (1.4%), and Perth (1.0%) recording the most substantial monthly increases. Perth’s property market has maintained steady growth, with dwellings increasing in value by 3.2% over the past quarter and 3.4% over the past year (CoreLogic, 2023).
The demand for housing in Perth continues to heavily outweigh the supply of available properties. REIWA recorded 5,181 properties listed for sale at the end of July 2023. This was down 3.1 per cent lower than June, and 39.4 per cent lower than 12 months ago.
The graph below demonstrates the downward trend of stock availability within the Perth market.
Source: REIWA and Momentum Wealth Research
Perth’s vacancy rate sees first increase in six months
For the first time in six months, Perth’s rental vacancy rate has risen to 0.9%. However, vacancies remain far below what is expected for a balanced market, which is typically between 2.5% and 3.5%. (REIWA, 2023)
Perth’s median rental price for houses remained unchanged at $580 per week in July, while the median unit price increased to $525 per week. (REIWA, 2023)
It took a median of 16 days to lease during July and in the week ending 30 July 2023, the number of properties listed for rent in Perth stood at just 1,877. This is a decrease from the 2,112 properties recorded four weeks earlier and the 2,244 properties recorded at the same time last year. (REIWA, 2023)
The graph below illustrates the declining availability of homes for rent in Perth.
Source: REIWA and Momentum Wealth Research
RBA cash rate trends
Following a softer rise in CPI than originally anticipated and the substantial rate rises incurred to date, the Reserve Bank of Australia (RBA) opted to leave the cash rate on hold at 4.10% for the second consecutive month at their August meeting. This comes after the RBA downwardly revised their December 2023 forecast for inflation and GDP growth.
CBA, Westpac and ANZ have all recently revised their forecast to indicate that the cash rate has reached its peak of 4.10%. However, NAB believes that one more rise will occur, bringing the cash rate to 4.35% by November 2023. The big four lenders then expect the cash rate to stabilise before contracting throughout 2024.
Source: ABS
Top Perth suburbs for price growth in July
Perth’s top performing suburbs for price growth in July were Wannanup (up 2.4% to $599,000), Nedlands (up 2% to $1,989,750), East Victoria Park (up 2% to $755,000), South Yunderup (up 2% to $520,000), and Secret Harbour and Quinns Rocks (up 1.7% to $559,500 and $615,000 respectively), according to REIWA.
Fastest selling suburbs in June
Perth’s fastest selling suburbs in July as recorded by REIWA were Greenfields, Cooloongup and Dayton (four days); Seville Grove and Wellard (five days); and Harrisdale, Armadale, Atwell, Kardinya and Mandurah (six days).