Perth’s median price rose again in January, up 1.6 per cent to $484,280, according to the CoreLogic Home Value Index.
Reflecting the market’s recent change in direction, median values were up 3.8 per cent for the rolling quarter and 3.4 per cent over the 12 months.
Sellers are responding to the changing market conditions, with 8287 properties for sale on reiwa.com in January, an increase of 1.2 per cent on December figures, but still 33.3 per cent lower than the same time last year.
The lowered supply and increasing demand is seeing properties sell at a faster rate, with the median days to sell 21 days, down from 43 days in January 2020.
Real Estate Institute of WA president Damian Collins said there was little doubt the Perth market had swung to the seller’s favour and buyers were needing to act a lot faster to secure a property.
Agents were reporting high turnout at home opens in some areas, with one Mt Hawthorn home viewed by over 150 groups in one weekend last month.
Mr Collins expected this week’s lockdown to have a minimal effect on market activity.
“With the announcement of the first case of community transmission of COVID-19, there will be a restriction on home opens for five days, but it will have a minimal short-term impact on the market,” he said.
“Unless we see a sustained lockdown and a significant economic impact, the property market is likely to continue its strong recovery.”
Sales activity dropped slightly in January, following an unprecedented spike in December.
“The spike in sales Perth experienced during December was quite unusual, typically we see activity drop off in December and January, before lifting again as we get further into the New Year,” Mr Collins said.
“Despite sales activity trending lower, numerous suburbs still saw house sales improve, with the top five selling suburbs including Meadow Springs (up 75 per cent), Yangebup (up 67 per cent), Mandurah (up 67 per cent), Alkimos (up 64 per cent) and Heathridge (up 44 per cent).”
The Perth rental market remained tight, with January marking the fifth consecutive month with less than 3000 properties listed for rent on reiwa.com.
“There were just 2826 properties for rent in January 2021, compared to 5784 in 2020, which is a drastic reduction in stock and we currently have a severe rental shortage,” Mr Collins said.
“While in the short term these conditions will entice investors back to the market, it is imperative the WA Government keep their promise to end the rental moratorium on March 28 to ensure the situation does not worsen.”
The median weekly rent increased $5 to $400 in January, according to reiwa.com data.
CoreLogic research director Tim Lawless said Perth’s annual lift in house rents was well into double digit territory while unit rents were also posting strong gains.
“The strong rental conditions comes after a long run of falling rents and low levels of investment activity,” he said.
“The result is extremely tight rental supply at a time of rising demand, while affordability is relatively healthy due to the sustained fall in rents between 2013 and 2018.