Managing Director of Realmark, John Percudani said “as we move forward into 2022, price growth appears to be continuing to increase, although at a moderated pace whilst affordability of WA houses remain attractive by comparison to other major Australian urban centers. Listing levels continue to be low and the prospect of the increased buyer and tenant demand looms with border normalisation. It is our belief that once State borders reopen on 5 February 2022, WA should see the residential market resetting as interstate migration resumes, driven by lifestyle and employment demands” said Mr Percudani.
Perth home value index and median house sale price
CoreLogic’s Perth home value index increased 0.4 percent during December and reiwa.com data shows Perth’s median house sale price was $520,000.
According to REIWA’s latest article, Perth’s top 10 suburbs for price growth in 2021 were revealed.
Woodlands is Perth’s top performing suburb for price growth in 2021, with its median house sale price having increased 35 percent to $1.23 million last year. Shenton Park was second with 32.1 percent price growth, followed by Hillman with 29.1 percent price growth.
The suburbs to record the biggest median house sale price growth during December were Applecross (up 6.2 percent to $1.7 million), Kalamunda (up 4.9 percent to $710,000), Wannanup (up 3.4 percent to $585,000), Mandurah (up 3.2 percent to $310,000) and Beckenham (up three percent to $422,500). Other suburbs to perform well were Cooloongup, Kardinya, East Victoria Park, Doubleview, and Safety Bay.
“At Realmark over many years we are often asked if Summer is the right time to sell my house, however, there are more active buyers in the summer selling season. At Realmark we know that with an increase in competing buyers, our sellers benefit from a better sale price for their property” said Mr Percudani.
Listings for sale
There were 8,511 properties for sale on reiwa.com at the end of December, which is seven percent less than November 2021. “Listing levels continue to be low and the prospect of the increased buyer and tenant demand looms with border normalisation” said Mr Percudani. On an annual basis, reiwa.com data shows listings for sale were four percent higher at the end of December 2021 than they were at the end of December 2020.
Perth rental market
According to REIWA Perth’s median rent price increased $5 to $445 per week in December 2021. Demand from tenants appears to be focused on the quality of properties with a high demand for family houses as well as tenants looking for longer tenancy security. This suggests good yield and security prospects for investors.
Rents have seen a sharp uplift off the back of the positive turn in migration and employment against supply. Housing rent values have increased by 11.5% both across Perth and regional WA with rental listings remaining tight across the state averaging around 8,800 over the past 6 months down from 26,441 in August 2021.
“The tight rental market is likely to continue this summer and borders reopening will apply further pressure on this trend,” said Mr Percudani.
Again, during this Summer it’s important for owners to canvass the market for potential tenants through home opens and marketing to secure several applications to select from potential tenants to ensure they have achieved the maximum investment outcomes.
REIWA stated the suburbs to record the biggest increase in median rent during December were Balcatta (up $30 to $450 per week), Aubin Grove (up $30 to $480 per week), Rivervale (up $25 to $450 per week), Waikiki (up $20 to $400 per week) and Yanchep (up $20 to $420 per week).
Other suburbs to record strong increases were Queens Park, Seville Grove, Riverton, Harrisdale and Morley.
REIWA states there were 1,864 properties for rent on reiwa.com at the end of December 2021.
Whether it’s renting or selling the Realmark Team focuses on the process, working with their clients through the pricing strategy and method of sale, as well as a high level of engagement from buyers and tenants, to provide clients with the assurance of a great market-driven result.
Sources
CoreLogic
Home Property Value Index
January 2022
https://www.corelogic.com.au/research/monthly-indices
REIWA
Perth Home Values Increased 13 percent in 2021
Published 4 January 2022
REIWA 2022, Perth Home Values Increased 13 percent in 2021, accessed 20 January 2022,
https://reiwa.com.au/about-us/news/perth-home-values-increased-13-per-cent-in-2021/
REIWA
Perth’s top 10 suburbs for price growth in 2021 revealed
*Data is based on Landgate settled sales as at 12 January 2022.
Published 18 January 2022
REIWA 2022, Perth’s top 10 suburbs for price growth in 2021 revealed, accessed 20 January 2022,
https://reiwa.com.au/about-us/news/perth-s-top-10-suburbs-for-price-growth-in-2021-revealed/
Realmark - The WA Property Market a recipe for investment success in 2022
https://www.realmark.com.au/blog/10676/the-wa-property-market-a-recipe-for-investment-success-in-2022
Realmark Videos Residential update
https://youtu.be/U89z8ByYHzI
Realmark Residential Investor update
https://youtu.be/5Pu6Fc2SQvw