Perth’s median house price hits $740k
The latest report from the Real Estate Institute of Western Australia (REIWA) showed Perth dwelling prices increased by nearly 2 per cent in December, despite staying longer on the market.
In December, the Western Australian capital city saw its median house prices rise to $740,000, up 1.7 per cent from November and 23.3 per cent year-on-year.
The median unit sale price increased by 2.1 per cent over the month, reaching $495,000, representing a 20 per cent increase from December 2023.
REIWA CEO Cath Hart said that while there was talk about declining prices and buyer’s markets on the east coast, conditions in Perth still favoured sellers and price growth.
“While the rate of price growth has slowed in the past couple of months, the underlying fundamentals remain strong,” Hart said.
“This includes strong population growth, with WA recording 2.8 per cent growth in the year to June 2024, low unemployment and a strong economy.”
Applecross suburb was Perth’s top performer with a 4.2 per cent growth, reaching a median house price of $2,500,000.
This was followed by Parkwood, up 4 per cent to $790,000; City Beach, up 3.4 per cent to $3,000,000; Fremantle and Westminster, both up to 3 per cent and reaching a median house price of $1,295,000 and $623,000 respectively.
South Perth, Medina, Shoalwater, Hamersley and Coolbellup also performed well, recording a growth of 1.9 per cent or more over the month.
Despite price growth, REIWA’s report showed the Perth market slowed down in December, with listing staying up longer.
Both houses and units in Perth sold in a median of 15 days, two days slower than in November and, respectively, five days and one day slower than a year ago.
Hart said the extra days on the market were expected and reflected the traditional slowdown in activity over December and the increase in new listings experienced in the past few months.
“The time to sell a property often increases in December. There is usually a flurry of activity earlier in the month with things slowing down as people become busy with end-of-year festivities. In addition, there are several public holidays at this time of year that slow market activity,” she said.
“This year, our members are also reporting the increase in new listings in the months leading up to December had reduced the FOMO seen earlier in 2024, giving buyers more choice. As a result, they are taking a bit more time with their purchasing decisions.”
At the end of December, there were 4,395 active listings for sale which was 22.6 per cent lower than the previous month but 20.5 per cent higher than a year ago.
“Active listings normally decline over the festive season, so the month-on-month decrease is not surprising,” Hart said.
“It is good to see that active listings are significantly higher than 12 months ago, which is positive news for buyers.”
While dwellings took longer to sell in December, Hart noted that time on the market across Perth is still noticeably short, and buyers are still quick to purchase as pre-COVID, the median time to sell was over 40 days.
According to REIWA, in December, Perth’s fastest selling suburbs for houses were Carlisle, with a sale time of six days; Beeliar and Cooloongup, taking seven days; Nollamara and Palmyra, at eight days; Spearwood, Golden Bay, Joondalup and Maddington, all at nine days; and Kinross, taking 10 days.
In comparison, the Perth’s rental market stayed stable, with dwellings reaching $650 per week – 8.3 per cent higher than in December last year.
The median weekly rent for houses remained unchanged at $670 while units rose to $650 per week, 4.8 per cent higher than in November and 14 per cent higher year-on-year.
Hart said while rental prices were mostly stable in 2024, movement in the market was to be expected.
“There is still strong demand for rental homes, particularly those that are more affordable or in popular locations, such as close to the city.
“This is putting some upward pressure on prices,” Hart said.