Perth houses selling at record speed
In October, properties in Perth took a median of just 8 days to sell, setting a new record and selling nearly twice as quickly as the 15 days recorded at the same time last year (REIWA, 2023).
Residential property values across Australia experienced a 0.9% increase in October, with Perth (1.6%), Brisbane (1.4%), and Adelaide (1.3%) recording the strongest monthly increases. Perth’s property market has maintained steady growth, with dwellings rising in value by 4.6% over the past quarter and 10.8% over the past year, which is the strongest annual rise in the nation. (CoreLogic, 2023).
The demand for housing in Perth continues to outstrip the supply of available properties. According to REIWA, there were only 5,031 properties listed for sale in the week ending on 30 October 2023. This number is slightly up from the 30-year low of 4,895 properties listed four weeks prior but significantly down from 8,235 properties listed during the same week last year.
The graph below demonstrates the downward trend of stock availability within the Perth market.
Source: REIWA and Momentum Wealth Research
Perth’s vacancy rate holds steady
In October, Perth’s rental vacancy rate remained at 0.7%. It has now been below 1% since August 2022 and given the high demand in the market, this rate is likely to remain around this level for some time. (REIWA, 2023).
Perth’s median dwelling rental price rose to a new all-time high of $590 per week in October (REIWA, 2023).
It took a median of 14 days to lease during October and in the week ending 30 October 2023, the number of properties listed for rent in Perth stood at just 1,719. This is slightly higher than the 1,679 properties recorded four weeks earlier and the 1,708 properties recorded at the same time last year. (REIWA, 2023).
The graph below illustrates the declining availability of homes for rent in Perth and the vacancy rate remaining at record lows.
Source: REIWA and Momentum Wealth Research
Perth among most affordable states
Housing affordability continued to decline during the June 2023 quarter according to REIA (2023). This decline was anticipated due to the escalating dwelling and rental prices nationwide, as well as many home loans shifting from low fixed rates to higher variable rate payments.
The average Western Australian family contributes 35.0% of their income towards mortgage repayments, which is up from the 34.5% recorded in the quarter prior. Along the Northern Territory and Australian Capital Territory, Western Australia remains one of the most affordable states or territories in the nation.
New South Wales maintains its position as the least affordable state, with homeowners spending 56.0% of their family earnings on mortgage payments, an increase from 55.0% in the previous quarter.
Source: REIA