Units Take Center Stage as Perth Market Continues to Heat Up
Perth’s property market continues to impress, with unit prices reaching a new all-time high in July! The median unit sale price climbed 2.2% compared to June, reaching a record $450,000. This is not only a new peak but also a significant 12.5% increase year-on-year.
Units Catch Up and Shine
REIWA President Joe White explains that unit owners have been waiting a long time for this positive trend. While house prices surpassed their 2014 peak back in December 2022, the unit market took its time. However, 2024 has seen a surge in unit demand, finally pushing prices to equal the previous record.
Why the Unit Boom?
This surge in unit demand can be attributed to several factors, according to Mr. White. Units offer a more affordable entry point into the market, especially in areas close to the CBD, making them attractive to buyers. Additionally, with new unit listings up 13% compared to the five-year average and sales exceeding that by 26.6%, the data clearly shows a rise in buyer interest. This high demand has also resulted in record-low “days on market,” meaning units are selling incredibly fast.
Top Performers and Growth Trends
Several suburbs experienced significant growth in July. Balga, Cannington, Osborne Park, Claremont, and Fremantle saw unit prices rise by over 1.3%. Mandurah, Leederville, Wembley, Midland, and Nedlands also joined the top performers list.
Houses Maintain Momentum
The housing market remains strong as well. The median house sale price reached $675,000 in July, a 2.3% increase from June and a substantial 19.5% jump compared to July 2023. Suburbs like Heathridge, Coodanup, Wannanup, Swan View, and Quinns Rocks witnessed the most significant price increases. Houses are also selling quickly, with a median time on market of just nine days.
Rental Market Update
Perth’s rental market shows signs of stabilization. Median weekly rents for dwellings and houses remained steady at $650 in July. Unit rents, however, experienced a 3.3% increase to $620. While rents have risen significantly year-on-year, Mr. White suggests the market may have reached an affordability ceiling. Tenants are likely seeking out smaller, more affordable units or co-renting to manage the increasing costs.
Looking Ahead
The Perth property market continues to impress with strong demand across both houses and units. While rental affordability remains a concern, a gradual increase in available rentals offers some relief to prospective tenants. Stay tuned for future updates as we explore market trends throughout the year.