Perth leads the pack when it comes to prime real estate

According to a new report by Knight Frank, Perth’s prime property led the pack when it came to price growth, with a 4.1 per cent rise year-on-year.

This was followed by Brisbane at 3.8 per cent and the Gold Coast at 3.5 per cent. Sydney came in at 1.9 per cent, while Melbourne trailed at 0.4 per cent.

Perth also topped the list when it came to rental growth, recording 5.3 per cent. This figure put it well ahead of the national average of 1.1 per cent.

For comparison, Brisbane’s prime rental growth was the runner-up at 1.3 per cent, while the Gold Coast came in third with 0.2 per cent.

“Underlying this pent-up demand, the prestige residential market tends to gain traction with a rallying stock market, so we’re likely to still see significant price growth on the horizon,” Knight Frank’s head of residential research, Michelle Ciesielski, predicted.

While Perth didn’t quite match Sydney’s annual prime sales volume of 2,298, it managed to eclipse Melbourne with 571 prime residential sales over the course of the 12 months to March 2021. This makes Perth the second-highest major city when it comes to prime residential sales volume.

Perth also managed to secure the second place slot when it came to annual sales turnover for prime residential property, notching up 85 per cent relative to the Gold Coast’s 91 per cent.

Commenting on trends on the Perth property market last week, REIWA president Damian Collin acknowledged the winter slowdown but said to expect strong sales in the spring.

“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.

Mr Collins called the latest COVID-19 outbreak and subsequent lockdown ‘concerning’ but redirected that there will be minimal short-term impact on the real estate market “provided Perth can get on top of this outbreak quickly”.