Perth’s real estate market continues to show remarkable growth, with both house and unit prices rising steadily. According to the latest figures, the median house sale price increased by 1.0% in February, reaching $757,750—an impressive 22.2% higher than in February 2024. Meanwhile, unit prices followed suit, climbing 2.0% for the month and 21.4% year-on-year to $510,000.
A Shift in Buyer Sentiment
Despite rising prices, the real estate landscape is evolving, with a noticeable shift in buyer behavior. REIWA CEO Cath Hart highlighted that while property values continue to grow, buyers are becoming more discerning and cautious in their purchasing decisions.
“Last year, FOMO (fear of missing out) drove buyers to stretch their budgets to secure a home. Now, buyers are taking a more measured approach, ensuring they can comfortably afford repayments rather than simply maxing out their borrowing capacity,” she explained.
Sellers are still experiencing multiple offers, with many homes selling above the asking price. However, market conditions are moderating, meaning sellers may encounter slightly longer selling times and fewer properties selling at the first home open. With these subtle market changes, expert guidance from a local REIWA agent remains crucial for sellers to price and present their homes effectively.
Suburb Growth Leaders
Several suburbs experienced strong price growth in February. The top-performing areas included:
- Mandurah: Up 2.9% to $530,000
- Doubleview: Up 2.5% to $1,190,000
- Carlisle: Up 2.3% to $775,000
- Lesmurdie: Up 2.0% to $908,750
- Bullsbrook: Up 2.0% to $625,000
Other strong performers were Stirling, Forrestfield, Bayswater, Seville Grove and Banksia Grove, all recording growth above 1.5% for the month.
Properties Selling Faster
February saw houses selling in a median of 13 days, which was nine days faster than in January but four days slower compared to a year ago. Units were selling even quicker, with a median of 12 days—five days faster than the previous month.
The fastest-selling suburbs for houses included Hamilton Hill (5 days), Beeliar and Yokine (6 days), and Banksia Grove, Coolbellup, Lesmurdie, Palmyra and Thornlie (7 days).
Listings on the Rise
Active property listings reached 4,948 at the end of February, marking a 1.1% increase from January and a 23.3% rise year-on-year. While new listings surged, strong buyer demand continues to keep active listings relatively stable. March is typically a busy month for real estate, meaning more listings are expected, but the fast pace of sales will likely keep overall supply tight.
The Perth Rental Market: Moderation in Growth
Perth’s rental market remains strong, with median dwelling rents increasing by 0.7% to $675 per week, an 8.0% rise year-on-year. House rents remained stable at $680 per week (up 4.6% annually), while unit rents held steady at $650 per week (up 12.1% year-on-year).
“As rental supply slowly increases and vacancy rates rise, we’re seeing the pace of rental price growth moderate,” Ms. Hart noted. However, conditions remain highly localised, with some suburbs experiencing high demand and rental price pressures, while others are seeing more vacancies.
Suburbs with the Highest Rent Growth
Several suburbs recorded significant rental price increases, including:
- Yokine: Up 9.9% to $680 per week
- Nedlands: Up 7.7% to $1,050 per week
- Dianella: Up 7.7% to $700 per week
- Subiaco: Up 6.7% to $800 per week
- Coodanup: Up 5.5% to $580 per week
Rental Listings & Leasing Times
At the end of February, 2,053 rental properties were available, a 4.8% decline from January but 23.7% higher than a year ago. Despite the increase in supply, strong tenant demand is keeping rental listings tight.
Median leasing times remained stable, with rental properties taking an average of 15 days to lease, unchanged from February 2024. Some of the fastest-moving rental suburbs included Innaloo (9 days), Belmont, Canning Vale, Highgate, Two Rocks and Wembley (10 days).
Perth’s property market remains strong, though subtle shifts in buyer and tenant behaviour indicate a more measured approach to transactions. Whether buying, selling, or renting, staying informed and working with local real estate experts (like us) can help navigate these changing conditions successfully. If you’re considering entering the market, contacts us today.