Perth home values increase seven per cent in first half of 2021

Perth home values increased seven per cent in the first half of 2021, according to the latest CoreLogic figures.

REIWA President Damian Collins said while the Perth home value index for June had only increased by 0.2 per cent, the cumulativegrowth over the first six months of the year had been substantial.

Although the June price growth rate is the smallest we have experienced this year, it has still been a positive year and brings the year-to-date total growth tally to sevenper cent. Furthermore, in the last financial year, home values have increased almost 11 per cent in Perth.

The smaller growth rate recorded in June is also not surprising given we have entered the traditional winter slowdown. In fact, itsencouraging that even as the colder weather has descended upon us and activity has eased slightly, we are still seeing price growth. This will hold Perth in good stead as we transition out of winter and into the spring selling season in the coming months,Mr Collins said.

Median house price

Perths median house sale price for June was $510,000, according to reiwa.com data.

Whilst overall growth rate figures are important for understanding market trends, they dont tell you the whole story. Its very pleasing that when we drilldown to suburb level, 84 suburbs recorded significant median house sale price growth during the month, Mr Collins said.

reiwa.com data shows the suburbs to record the biggest increase in median sale price growth during June were Parkwood (up4.8 per cent to $450,000), Booragoon (up 4.1 per cent to $825,000), Merriwa (up 3.9 per cent to $335,000), Quinns Rock (up 3.9 per cent to $499,000) and Joondalup (up 3.2 per cent to $525,500).

Other suburbs to perform well were Subiaco, Kalamunda,Tapping, Nedlands and Wanneroo.

Listings for sale

There were 8,933 properties listed for sale on reiwa.com at the end of June, which is one per cent less than at the end of May.

We saw a small decline in listings at the end of June compared to May, but compared to three months ago, listingsfor sale have increased 8.1 per cent. On an annual basis, stock levels remain 13.4 per cent lower than they were at the end of June 2020, Mr Collins said.

Median selling days

It took a median of 15 days to sell a home in June, which is one day slower than it took in May.

Despite the minor increase in median selling times, the figure for June is still close to the lowest we have seen in the last 15 years, Mr Collinssaid.

reiwa.com data shows the suburbs to record the fastest median selling times in June were Kingsley (seven days), Wembley, Brabham, Craigie, Greenwood, Heathridge, Kinross, Palmyra, Willetton (all eight days) and Parkwood (nine days).

While the Perth sales market slowed slightly in June, it is still performing well and competition amongst buyers remains high. REIWA anticipates the Perth market recovery will continue throughout the second half of 2021 and into 2022, Mr Collins said.

Median rent price

Perths median rent price for June was $425 per week, which is $5 more than it was in May.

Western Australia remains the most affordable place in the country to rent in. Despite the small increase recorded to the Perth median rent during themonth, it is still $25 cheaper than it was in 2013 and 2014, when it peaked at $450 per week, Mr Collins said.

Median leasing times

It took a median of 19 days to lease a rental during June, which was one day slower than May 2021 but eight days faster than June 2020.

The suburbs to record the fastest leasing times during June were Yanchep (11 days), Balga (13 days), Maddington(13 days), Innaloo (14 days) and Success (14 day).

Other suburbs to perform well were Thornlie, Wellard, Golden Bay, Beckenham and Brabham.

Listings for rent

There were 2,818 properties for rent at the end of June on reiwa.com, which is stable compared to last month and 5.7 per cent higher than three months ago.

reiwa.com data shows the suburbs to record the biggest growth in rental listings duringthe month were Shelley, Piara Waters, Kardinya, Hamilton Hill, Coolbellup, Osborne Park, Dianella, Leederville, Nedlands and Secret Harbour.

The listing figures for June are encouraging. While we are by no means out of the woods, its pleasingthat stock levels have started to stabilise and on a three-month basis are improving, Mr Collins said.

The Perth vacancy rate is currently at one per cent. Wed like to see that lift to around two to three per cent to restore balance in themarket. With investor finance levels starting to rise, we should hopefully see more properties come to market in the second half of the year.

It is imperative that investors remain an active part of the WA market so there are enough rentalsto keep up with tenant demand. The outcome of the Residential Tenancies Act review, which is currently underway, needs to be fair for all parties and ensure investors arent disincentivised from buying in WA.

COVID-19 impact

The latest COVID-19 outbreak and subsequent lockdown are concerning, but as was the case in February and April, there should be minimal short-term impact on the real estate market provided Perth can get on top of this outbreak quickly, Mr Collins said

/Public Release. This material comes from the originating organization/author(s)and may be of a point-in-time nature, edited for clarity, style and length. The views and opinions expressed are those of the author(s).View in full here.