Perth Property Market Update: Spring Buzz and Shifting Dynamics

Perth’s property market has been on an exhilarating ride over the past two years. Driven by significant price growth and a booming rental sector, the city has captured the attention of interstate investors and local buyers alike. But with recent market shifts, what’s next for Perth real estate? Let’s dive into what’s happening and what you can expect as we head into the end of the year and beyond.

1. Strong Growth Over the Past Two Years

In just two years, Perth has experienced an impressive surge in property prices. Many suburbs have made headlines for their exceptional growth, ranking among Australia’s top performers. Interstate investors have fuelled this boom, particularly in areas priced below the city’s median house price, and the rental market has grown alongside it. But now, as median house prices rise beyond $715,000 and rental yields stabilise, we’re seeing a change in the air.

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2. Market Shifts: What’s Happening Now?

While the growth has been remarkable, the market is beginning to balance out. Here’s what’s changing:

• More Balanced Market: With rental growth flattening and vacancy rates rising, Perth’s market is shifting from a frenzied seller’s market to a more traditional landscape. 

• Home Open Numbers: Expect to see fewer people attending home opens compared to peak times. 

• Negotiations Over Frenzy: Instead of the multiple-offer chaos we’ve grown used to, we’re likely to experience more measured negotiations. 

• Days on Market: Properties may spend longer on the market as buyers take more time to weigh their options.

The dominant buyer group has also shifted. While investors still play a role, owner-occupiers are now leading the charge. This is fantastic news for young families looking to settle down in Perth’s ever-growing communities, especially those seeking quality infrastructure and amenities.

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3. October Market Wrap-Up

Spring has brought a buzz to the Perth property scene, and October was one for the books. According to the latest REIWA report, over 5,500 new listings hit the market, the highest monthly figure since early 2021. Here are some key takeaways:

• Surge in Listings: October saw nearly 4,000 houses listed, contributing to a 27.1% rise in active listings. 

• Continued Price Growth: The median house price climbed to $715,000, up 2.1% from September and 22.2% compared to the previous year. Units weren’t left behind either, with a 17.3% annual increase, bringing the median unit price to $475,000. 

• Sales Times Slow Down: Houses are now selling in a median of 11 days, one day longer than September, indicating a slight cooling. 

• Rental Market Trends: House rents have held steady at $650 per week for eight months, while unit rents saw a 5% rise due to the demand for affordable, single-occupancy options.

Despite the increase in listings, the market remains competitive, providing more choices for buyers. However, the slight slowdown in sales times hints at a gradual transition. Upcoming elections and potential interest rate changes will be crucial factors to watch as they could further influence market trends.

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4. What Does This Mean for Buyers and Sellers?

If you’re thinking of buying or selling, here’s what you should know:

• Buyers: The increase in listings is a golden opportunity, offering more choices and possibly better negotiating power. With the market stabilising, now might be the right time to get your foot in the door before prices rise further. 

• Sellers: It’s still a strong market, but be prepared for longer sales times and the need for strategic pricing. Homes with quality features, good locations, or recent renovations will continue to attract attention.

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Final Thoughts

Perth’s property market is buzzing with activity this Spring, but there’s a shift toward a more balanced landscape. While October saw a record-breaking number of new listings, strong price growth persists. As we move into the holiday season and the New Year, it will be interesting to see how the market evolves.

If you want to dig deeper into the latest data or get specific advice tailored to your situation, feel free to reach out. Whether you’re buying, selling, or investing, staying informed is key to making the best decisions.

Stay tuned, and let’s watch how Perth continues to transform in this ever-exciting property market! 📈✨