Perth Residential Market Insights – February 2021
Perth Sales Market
6-months of growth for Perth
CoreLogic’s Home Value Index for Perth grew again in February, up 1.5%, and this represents 6-months of growth since September 2020. The last week of February was a strong week for the Perth sales market with 1,058 properties sold, up 51% from 12-months ago. Sales stock remains low with only 7,849 listings (37% less than 12-months ago) and buyers are continuing to compete amongst one another for high-quality stock.
Demand turning to desperation
Perth’s reducing supply is placing strong upwards pressure on prices as buyers compete for sales stock. Our buyer’s agents are regularly encountering strong crowds at home opens and regularly compete against several other offers. A recent example that highlights this competition was a house in Hamersley that a client was interested in. Over 100 groups viewed the property in three days and the property sold for over $700,000 – almost $100,000 above where we appraised the property. Our client was able to secure an alternate property in Duncraig that met their criteria and was below our market appraisal.
The lack of sales stock is creating a sense of urgency amongst buyers, many of whom end up overpaying for properties. The value of an experienced buyer’s agent cannot be underestimated, especially in a moving and competitive market.
Perth Rental Market
WA remains most affordable place to rent
Despite median rent having grown in recent months, WA remains the most affordable state in Australia for rentals. Only 17.8% of household income is required to meet rental repayments, far below eastern states markets, providing room for rents to rise before tenants are priced out.
Rental market continues to tighten as end of rental moratorium approaches
806 properties were leased for the week ending March 28, which represented 29% of the available rental stock on market. Rental listings remain well below 3,000 at 2,765, marking a fall of 48.5% from market levels 12-months ago.