Perth unit market takes over in a post-COVID country first
Perth unit sales have risen by over 50 per cent in the past year, building on the capital’s current recovery trend.
Unit sales across Perth soared 58 per cent in the first quarter of 2021, compared with a year earlier, reaching their highest level since 2013, figures from the Real Estate Institute of Western Australia (REIWA) revealed.
According to REIWA president Damian Collins, Perth’s extraordinary growth in unit sales has ultimately outpaced house sales, which added 35 per cent over the same period.
“Several factors are contributing to this. With the shortage of houses for sale, more people are considering a unit as a place to live … Apartments, townhouses and units offer plenty of lifestyle appeal and convenience as they are generally lower maintenance and positioned closer to the CBD and other amenities,” Mr Collins said.
“We have also started to see investors return to the market, and many prefer to buy units.”
Also contributing to the surge in unit sales is Perth’s affordability, Mr Collins noted.
Perth’s median unit price has grown by only 0.5 per cent over the past year, significantly lower than median house price growth at 4 per cent.
Currently, the median price for Perth units sits at $381,750, over $100,000 less than the median house price of $499,000.
During the three months to March 2021, it took an average of 32 days to sell a unit in Perth, 25 days quicker than the same period last year, although still 17 days longer than the median selling time for houses.
Further proving the strength of the unit market, REIWA data also revealed that while the number of units listed for sale in March 2021 dropped 16 per cent compared with March 2020, houses still saw a steeper decline at 41 per cent over the same period.
“REIWA is forecasting strong house price growth in 2021,” according to Mr Collins.
“With the rental moratorium over and near record-low vacancy rates, it is likely the strong demand for units will continue throughout the remainder of 2021,” he concluded.
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