The Perth property market continues to demonstrate steady growth, albeit at a more moderate pace than seen throughout 2024. January’s figures from REIWA reveal a market undergoing a subtle shift, presenting both opportunities and considerations for buyers and sellers.

Price Growth Continued in January, but at a Slower Pace

Perth’s median house sale price reached $750,000 in January, a 1.4% increase for the month and a substantial 23% rise compared to January 2024. The median unit sale price also saw positive movement, rising 1% to $500,000, reflecting a 20.5% year-on-year increase.

REIWA CEO Cath Hart notes that while prices are still climbing, the market is experiencing a softening, typical of the festive season but also indicative of a shift in buyer sentiment. The “fear of missing out” (FOMO) that characterized the latter part of 2024 has eased, leading to more discerning buyers who are taking their time with purchasing decisions.

This doesn’t mean the market has cooled significantly. Well-presented homes in desirable locations are still attracting strong interest and selling quickly. However, other properties may experience less demand and longer sales timelines. Key growth areas in January included Scarborough (2.7% increase), Dawesville (2.5%), Camillo (1.8%), Greenfields (1.7%), and Port Kennedy (1.5%).

Time on Market and Listings

The median time on market for houses increased to 22 days in January, while units took 17 days to sell. This increase reflects the change in buyer behavior and is also typical of the festive season. While a slight decrease may be seen in the autumn, it’s anticipated that days on market will likely continue to ease throughout 2025.

Active listings have risen significantly, up 25.5% compared to a year ago, reaching 4,767 at the end of January. This increase is attributed to both the longer selling times and a rise in new listings. This provides buyers with more choice in the market.

Rental Market Moderation

The rental market is also showing signs of moderation. While Perth’s median dwelling rent rose 3.1% in January to $670 per week, the annual growth rate has significantly declined. This suggests a cooling in the rental market compared to the rapid growth seen in previous years. Similarly, rental listings have increased, providing more options for tenants.

Key Takeaways for Buyers and Sellers

• Buyers: With more listings and a shift in buyer sentiment, you have more time to research and make informed decisions. Focus on quality properties and consider working with a buyer’s agent to navigate the current market.
• Sellers: While conditions still favor sellers, it’s crucial to price your property competitively and ensure it is well-presented. Listen to your agent’s advice on marketing and staging to attract the right buyers.

Holdsworth Real Estate is here to help you navigate this evolving market. Contact us today for expert advice and personalized service, whether you’re buying, selling, or renting.