In an exciting development for the Perth property market, despite initial concerns over home shortages, the year 2023 emerged as a period of remarkable resilience and growth. With 53,895 settled sales encompassing houses, units, and land, the market witnessed only a slight 3.3 per cent decline compared to 2022. This gap is expected to narrow further as more properties settle in the upcoming months.
A significant highlight of 2023 was the increase in the total value of sales, which reached a staggering $34.84 billion, up by 1.7 per cent from the previous year. REIWA CEO Cath Hart attributed this growth to the rising sale prices across Perth, marking a historic year for the market.
Record-Breaking Median House Sale Prices
The median house sale price in Perth soared to an all-time high of $590,000 in 2023. Although the median unit sale price remained relatively stagnant for most of the year, it experienced a 2.0 per cent growth in the last quarter, settling at $408,000. This slight increase of 0.7 per cent from the end of 2022 sets a positive outlook for further growth in 2024.
Bullsbrook: A Star Performer
Bullsbrook distinguished itself with the highest price growth in house sales, witnessing a 33.3 per cent increase in its median house sale price, which now stands at $530,000.
Affordability Remains a Key Focus
Despite ongoing interest rate rises, affordability remained a critical factor for buyers. This is evident in the Top 10 list for house sales, where Shelley and Woodbridge are the only suburbs with median house sale prices above Perth's median. The rest, including Armadale – the most affordable at $380,000 – saw strong price growth due to heightened competition in lower-priced suburbs.
The Unit Market's Emerging Strength
West Leederville emerged as the top performer in the unit market, with a median sale price increase of 31.6 per cent to $500,000. Interestingly, seven of the Top 10 suburbs for unit sale price growth were below the median unit price. The growing demand for units, driven by their affordability and the desire to exit the challenging rental market, is pushing unit prices up.
Speedy Sales and the Fastest Selling Suburbs
The year 2023 also saw houses selling incredibly quickly, with a new record of a median eight days on the market set in October and November. Leda and Nollamara topped the list as the fastest selling suburbs for houses and units, respectively.
Perth Rent Market: Setting New Records
The rental market wasn't left behind in breaking records. With high demand and low supply, rent prices soared to new heights. The median weekly rent at the end of December 2023 was $620 for houses and $570 for units, with a vacancy rate of 0.7 per cent for most of the year. This trend is expected to persist into 2024.
Investment Opportunities and Rental Yields
Perth's strong rental market and relatively affordable housing have attracted significant attention from Eastern States investors. Units especially stood out for rental yield, with the Top 10 suburbs for units recording yields above 7.4 per cent. In contrast, the top suburb for houses yielded 6.4 per cent.
Top Performers in Rent Price Growth
Swanbourne and Mosman Park led the way in rent price growth for houses and units, respectively. Properties continued to rent quickly, with Coogee and Glendalough being the fastest leasing suburbs for houses and units.
In conclusion, 2023 was a landmark year for the Perth property market, marked by robust growth, quick sales, and strong rental performance. This paints a promising picture for 2024, offering excellent opportunities for both homeowners and investors. Stay tuned to Emerald Property Estate for more insights and updates on the dynamic Perth property market.
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