Perth Residential Property Market Insights – October 2022


Perth’s sales price remains stable

During the month of October, Perth’s median dwelling value remained relatively stable with a dip of 0.2% to $559,043. Perth’s performance remains ahead of many other capital cities including Sydney (-1.3%), Melbourne (-0.8%), Brisbane (-2.0%) and Canberra (-1.0%) (CoreLogic, 2022). It took a median of 16 days to sell over the past 12 months to October, which is one day faster than in September (REIWA, 2022).

Source: REIWA and Momentum Wealth Research

This month has continued to see the supply of newly constructed dwellings unable to meet purchaser demand due to ongoing labour shortages. There were 8,235 properties listed for sale during the week ending 30 October 2022, which is up slightly from 8,116 four weeks prior. There were 49,157 sales recorded during the 12 months to October 2022, which is 16% less than levels observed a year ago (REIWA, 2022).

Source: REIWA and Momentum Wealth Research

Rental vacancy rates continue to decrease

Perth’s median rental house price remained at $500 per week in October 2022 which is 11.1% more than the year prior. There were 1,708 properties listed for rent in Perth during the week ending 30 October 2022 which is down from 1,724 four weeks prior and 2,152 at the same time last year (REIWA, 2022). The graph below shows the reduction in vacancy rates and the number of homes available for rent over the past five years.

Source: REIWA and Momentum Wealth Research

This continued downward trend in the supply of rental properties within Perth has caused vacancies to follow a similar trend, falling to 0.7% in September 2022 (REIWA, 2022). It took a median of 15 days to lease from 12 months to October, which is the same as September and three days faster than levels seen a year ago (REIWA, 2022).

Australia sees CPI increases in all capital cities, except for Perth

Australia recorded an annual national CPI increase of 7.3% in September 2022, which is the highest recorded since 1990. All capital cities recorded an increase in quarterly CPI with the exception of Perth which fell 0.5%. Perth’s fall in CPI was largely attributed to the reduction in housing costs caused by the WA State Government’s one-off $400 Household Electricity Credit to residents. This one-off payment is only a short-term influencer with Perth’s housing costs expected to normalise in the coming quarter.

Source: Australian Bureau of Statistics and Momentum Wealth Research