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Property prices among Perth’s best performing suburbs have shot up by more than 30 per cent in the just completed financial year.
Coastal and prestige western suburbs dominate the top ten growth rates for the city.
Marmion was Perth’s top performing suburb for price growth during the 2021-22 financial year, with its median house sale price increasing 39.7 per cent to $1.35 million.
North Beach was second with 36.2 per cent price growth, followed by Gwelup with 35.2 per cent price growth.
Source: REIWA
REIWA President Damian Collins said Perth property market conditions were strong, which was reflected in the high growth rates of these top 10 suburbs.
“Each suburb on this list experienced median house sale price growth of more than 26 per cent in just 12 months, which is significant and suggests competition among buyers is high,” Mr Collins said.
Of the 10 suburbs on the list, nine had median house sale prices above $1 million.
“While price growth has been widespread across all price points over the last 12 months, it is Perth’s luxury market that has dominated this list, with good quality homes in desirable locations achieving positive outcomes for sellers in these areas,” Mr Collins said.
Additionally, five of those nine suburbs saw their median house sale price enter the million-dollar price bracket during the 2021-22 financial year.
“At the end of June 2021, Marmion, Gwelup, Mount Hawthorn, Fremantle and North Perth all had median house sale prices below $1 million.
“Fast forward 12 months and their medians now sit comfortably above $1 million,” Mr Collins.
“Even more impressive, is that for each of those five suburbs, this is the first time they have recorded median house sale prices above $1 million.
“REIWA anticipates Western Australia’s strong residential property market conditions will continue for some time, driven by the state’s healthy economy, ongoing population growth and housing shortage.”
Mid-priced suburbs performed best in June
The performance of the top-listed suburbs is all the more remarkable given that in 2022 property prices in Perth have increased a more modest 4 per cent.
CoreLogic’s Perth home value index increased 0.4 per cent during June, marking the seventh consecutive month of price growth.
The best performing suburbs over the past month are markedly different from the top ten for the year, with inland eastern suburbs and mid-range and affordable suburbs dominating.
Mr Collins had predicted price growth of 10 per cent for the year and said the market was on track to deliver that growth.
“As we move through the winter months, it is likely some heat will come out of the market, however, not enough to impact Perth’s overall growth trajectory.”
The suburbs to record the biggest increase in median house sale price during June were Edgewater (up 3.3 per cent to $620,000), Riverton (up 3.3 per cent to $736,500), Kalamunda (up 2.8 per cent to $735,000), Jindalee (up 2.4 per cent to $640,000) and Padbury (up 2.3 per cent to $655,000).
Other suburbs to perform well were Alkimos, Mullaloo, Seville Grove, Shenton Park and Dawesville.
“Perth’s median house sale price is still the most affordable median of any capital city in the country. While increases to the cash rate will have some impact on affordability, West Australians are very well positioned to manage these costs,” Mr Collins said.
Listings for sale
There were 8,541 properties for sale on reiwa.com at the end of June, which is 2.6 per cent higher than May.
“Listings for sale remain low and until listing volumes reach that 12,000 – 13,000 balanced market figure, competition amongst buyers will be high – especially as the state’s population increases,” Mr Collins said.
Time on market
The median time to sell a house was 16 days during June, which is two days slower than May and three days faster than June 2021.
“While the median selling time was a couple of days slower than May, the June figure is still much lower than the 30 to 40 days we would typically see in a balanced market,” Mr Collins said.
Reiwa.com data shows the fastest-selling suburbs in June were Orelia (three days), Parmelia (four days), Meadow Springs (six days), Kingsley (six days) and Medina (six days). Three of those suburbs (Orelia, Parmelia and Medina) are within the city of Kwinana.
Other suburbs to record fast median selling times were Merriwa, Waikiki, Wanneroo, Safety Bay and Kinross.
Perth rental market
Perth’s median rent price held at $470 per week during June.
“While the median rent price has risen over the last year, we are not seeing month-on-month unsustainable growth rates,” Mr Collins said.
Median leasing times
It took a median of 16 days to lease a rental during June, which was the same as May and four days faster than June 2021.
The suburbs that recorded the fastest median leasing times were Yanchep (eight days), Atwell (nine days), Yokine (10 days), Perth (11 days) and Queens Park (11 days).
Other suburbs to experience fast median leasing times were Alkimos, Balga, Duncraig, Seville Grove and Tapping.
Listings for rent
There were 2,296 properties for rent on reiwa.com at the end of June, which is 0.5 per cent more than the end of May and 17.5 per cent less than at the end of June 2021.
“The housing shortage is the biggest issue facing the WA rental market,” Mr Collins said.
“While we have one of the most affordable rental environments in the country, there simply are not enough available rentals to meet tenant demand,” Mr Collins said.
“WA desperately needs an influx of investors to help improve the supply of rentals.
“It is imperative that no major changes are made to residential tenancy laws during the Residential Tenancies Act review that would discourage investors from buying properties in WA.”
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