Continued tight market conditions combined with the expanded deposit guarantee scheme created a rise in capital city median home values which have already offset the boost to borrowing capacity for median income households from earlier rate cuts. According to Cotality (formerly CoreLogic), national median dwelling values rose by 1.1% for the month, the fasted growth recorded for over 2 years, lifting the quarterly growth rate to 2.8% and annual change to 6.1%. The combined capital cities index matched the national figure, also recording 1.1% monthly growth. Perth once again led from the front, with median dwelling values up 1.9% for the month, bringing three-month growth to 5.4% and annual gains to 9.4%. This placed Perth at the front of the pack for monthly growth, with Brisbane in second place trailing by just 0.1%. The city’s ongoing performance continues to highlight the strength of underlying demand, low supply and the strength of overall market conditions.

According to REIWA, available listings across Perth Metro increased by only .99% from September to October, taking total stock to just 2,869 properties – this is 42% lower than 12 months prior. For the 3^rd month in a row, Perth has had under 3000 properties for sale, creating a new ‘Post-COVID Low Point’ in supply. Sales activity lifted by 5.64% in October, with 918 transactions recorded in the final week of the month. The median house price rose 1.23% to $820,000, marking another record high for Perth. In the rental market, median unit rents held steady, while house median rental prices grew 1.45% to $700 a week.

Within the City of Melville, the REIWA median monthly house price increased 1.06% to $1,425,000, continuing its steady upward trajectory. Listings rose 2.05% to 146 properties, while sales volumes escalated 55.88% to 159 transactions, bringing the sales-to-stock ratio up to 52%. Across core local suburbs, total listings declined 11.03% by the end of October. Significant decreases in listings were recorded in Booragoon and Melville, while all other suburbs remained relatively steady.

With the supply of property in Perth hitting new post-covid lows, its hard to visualise a slowdown in price growth for the near future. This may be further accentuated with interest rates expected to continue on a cutting cycle for the time being. REIWA are forecasting approx. 10% growth in property prices over the next 12 months, but this very well may turn out to understated with an average price growth of over 1% per month occurring since June this year.