Perth and City of Melville Real Estate Market Wrap
Following the 2.8% growth recorded during the June Qtr 2023, Perth dwelling values have continued to rise month on month with 1.0%, 0.9% and 1.7% increases recorded from July to September. This totals a 3.6% growth in values during the Sept Qtr 2023 which outpaces the national growth of only 2.2% during the same period. Perth values are now up 8.7% year to date making it the top performing Capital City this year and setting new record highs in September, while all other capital cities (except Adelaide) are still below their previous highs.
The state economy continues to remain strong in WA. This, in combination with, strong demand and high affordability remain some of the key factors driving the Perth market. However, strong population growth in the face of historically low supply levels and an ever-low vacancy rate in the rental market (still at 0.7%), appear to be the primary factors pushing Perth into record price territory. Stock levels continue to decline, with only 4,895 properties for sale across Perth (as at 1 Oct), and this is not expected to change in the short term. The stock that is coming to market is selling quickly, with the average days on market in Perth now down to 9 days. Strong sales results have also continued through the September Qtr.
The RBA has now kept interest rates on hold for four consecutive months which is no doubt boosting the confidence of Perth buyers. Inflation will still be a factor in future decisions to change rates. The RBA has indicated that we are not out of the woods with inflation yet and has alerted to possible future rate rises. Despite the rhetoric of the RBA most industry experts are of the view that if any further rates rises are to come, they will be few at best, and any rates rises would be unlikely to deter Perth prices given the how the other key market drivers are performing.
Around our local markets, we are seeing strong growth in true dwelling values across almost all suburbs. Of note, the middle and top end price points appear to be driving the bulk of sales with strong sales activity and price growth occurring around the $1-2 Million price bracket. We have also seen some renewed activity for premium and riverside homes with some strong sales results of riverside properties when priced appropriately. The market between $800k and $1m has also been a hotly contested price point with many buyers trying to get into our locals suburbs at the more affordable end of pricing.
Presentation of your property is still critical and there is still a large price divide for properties that aren’t presented well to market or priced too high. Sales strategy, pricing strategy and marketing of properties is also critical if you want a top result in the current market. Those who don’t get this right can risk being exposed to longer sales campaigns and potential price reductions.
I look forward to updating you again next month.
Download our free 28-page September Quarter Market Report here.
If you’re curious about the value of your property in this market, you can refer to our online price guide form here.
Or, for more personalised assistance, please call me on 0447 120 125 or email firstname.lastname@example.org.