Perth’s property market sizzles despite ‘winter slowdown’
Despite the typical winter slowdown, Perth reported plenty of property hotspot activity in June.
While Perth’s real estate market cooled in June, industry figures are expecting a strong selling season come spring.
“Although the June price growth rate is the smallest we have experienced this year, it has still been a positive year and brings the year-to-date total growth tally to 7 per cent,” said REIWA president Damian Collins.
In the last financial year, Perth’s home values have increased 9.8 per cent.
Looking forward, Mr Collins suggested that the smaller growth rate recorded in June “is also not surprising, given we have entered the traditional winter slowdown”.
According to him, “it’s encouraging that even as the colder weather has descended upon us and activity has eased slightly, we are still seeing price growth”.
“This will hold Perth in good stead as we transition out of winter and into the spring selling season in the coming months,” Mr Collins said.
Which suburbs are performing despite the time of year?
The REIWA said that Perth’s median house sale price for June was $510,000, with Parkwood, Booragoon, Merriwa, Quinns Rock and Joondalup recording the largest gains when it comes to monthly growth.
Other suburbs highlighted by the REIWA included Subiaco, Kalamunda, Tapping, Nedlands and Wanneroo.
Despite the modest price growth, WA saw some decline when it came to sales volume and velocity.
“We saw a small decline in listings at the end of June compared to May, but compared to three months ago, listings for sale have increased 8.1 per cent. On an annual basis, stock levels remain 13.4 per cent lower than they were at the end of June 2020,” Mr Collins revealed.
Meanwhile, the median number of days on the market for a Perth-based property in June 2021 was one day longer than that of May 2021 at 15 days.
However, Mr Collins argued that this figure does not tell the full story.
“Despite the minor increase in median selling times, the figure for June is still close to the lowest we have seen in the last 15 years,” Mr Collins said.
With a median selling time of just seven days, Kingsley led the pack when it came to suburbs. It was followed by Wembley, Brabham, Craigie, Greenwood, Heathridge, Kinross, Palmyra, Willetton – who all managed a median selling time of eight days.
“While the Perth sales market slowed slightly in June, it is still performing well and competition among buyers remains high. REIWA anticipates the Perth market recovery will continue throughout the second half of 2021 and into 2022,” Mr Collins said.
“The latest COVID-19 outbreak and subsequent lockdown are concerning, but as was the case in February and April, there should be minimal short-term impact on the real estate market, provided Perth can get on top of this outbreak quickly.”
More from this writer:
-
FHBs should weigh the pros and cons before buying an apartment
-
Even experts agree that Australia’s property market doesn’t make sense anymore
-
Singapore is now the largest foreign investor in Australian property market
-
NSW’s new permit system locks investors out of Central Coast hotspots
-
Expats said to be the culprit behind price growth in premium suburbs
-
CoreLogic: Lockdowns might be bad news for spring, but conditions are right for a rebound
-
Australia’s construction sector said to be in ‘early stages’ of another boom