The Perth real estate market continues to demonstrate its resilience, with overall sales activity showing a slight decrease of 8% last week. While this might seem like a slowdown, the market is showing signs of stability, particularly when viewed in the context of seasonal trends and broader market movements. Notably, there was a significant jump in land sales, up 33.3%, indicating continued interest in new developments and future building projects.

Sales Activity: A Closer Look at the Numbers

REIWA members reported 301 transactions last week, reflecting a minor dip from the previous week. House sales were down 10.3% and unit sales decreased by 9%. However, the 33.3% increase in land sales suggests that buyers are still actively looking towards the future and considering building their dream homes.

Top Performing Suburbs: Spotlight on Demand

• For Sales: Baldivis and Scarborough led the pack with 7 sales each, highlighting their continued popularity. South Perth saw 6 sales, while Ellenbrook and Halls Head each recorded 5.
• For Rentals: Baldivis again tops the list with 7 properties leased, demonstrating its appeal to renters. Bayswater, East Perth, Innaloo, and Perth all saw 6 properties leased, indicating strong rental demand in these areas.

These suburbs continue to be in high demand, making them attractive to both owner-occupiers and investors.

Inventory: Tight Supply Continues

The number of properties for sale in Perth dropped 6% last week to 4,307. This decrease was across the board, with house listings down 5.8%, unit listings down 7.6%, and land listings down 4.2%. The current inventory is 22.5% lower than four weeks ago, reflecting a tightening market. However, inventory is still 18.6% higher than the same time last year, which is a sign of some normalisation in the market. This suggests it is still a seller’s market, but conditions are slowly adjusting from the peak levels seen in recent years.

Rental Market: Slight Increase in Listings

In contrast to the sales market, the rental market saw a 7.1% increase in available properties last week, with 1,934 properties for rent. Despite this weekly increase, the number of rental listings is still 14.3% lower than four weeks ago, although 6% higher than a year ago. 244 properties were leased last week, up 6.6% on the previous week. However, leasing activity is significantly lower compared to the same time last year, which likely reflects the slower pace of transactions during this period.

Price Points: From Shelley’s Premium to Mount Hawthorn’s Value

The highest sale price recorded last week was $2,150,000 in Shelley, while the most affordable was $630,000 in Mount Hawthorn. This continues to highlight the wide range of properties available in Perth, catering to diverse budgets and lifestyles.

Key Takeaways for Buyers, Sellers, and Investors

• For Buyers: While overall sales activity has dipped slightly, the jump in land sales suggests that many are still choosing to build. With inventory still relatively tight, competition for existing homes remains. Be prepared to act decisively when the right property becomes available.
• For Sellers: The market remains favorable for sellers, particularly with the continued low inventory levels. Properly pricing and presenting your property is crucial to achieving a successful sale in the current environment.
• For Investors: The rental market is showing mixed signals. While listings have increased slightly week-over-week, they are still lower than a month ago. Demand in popular suburbs remains robust, indicating potential for solid rental returns.

Navigating the Perth Market with Confidence

As your dedicated real estate professionals, we’re here to help you understand these market nuances and make informed decisions. Whether you’re considering buying, selling, or investing, we provide the expertise and local knowledge you need to succeed. Contact us today for a personalized consultation and let us guide you through your real estate journey.