Perth, the fourth largest city in Australia, continues to have a thriving real estate market in 2022. With strong demand and limited listings, the city is experiencing steady growth in both residential and commercial properties. In this article, we will explore the current state of the Perth property market, highlighting key factors that have contributed to its success.
Interest rates
Australia's annual inflation rate reached 5.1% in the first quarter of 2022, surpassing market estimates. In response, the Reserve Bank of Australia increased interest rates, impacting the residential property market in Perth. While interest rate hikes have slowed down the growth of property prices, Perth still outperforms large cities on the east coast.
House listings
Limited property listings combined with high sales volume have created supply shortages in Perth. Although this poses challenges for buyers, it presents opportunities for investors and sellers. Properties in Perth have become highly liquid assets, with buyers needing to make quick decisions to avoid missing out. The number of house listings in Perth has remained around 8,000, significantly lower than the market demand.
Perth house prices
The median house price in Perth was $525,000 in May, putting the city on track to achieve the forecasted 10% price growth by the end of 2022. Despite this overall growth, there are still opportunities to find affordable properties in certain suburbs. For example, some houses can be purchased for as low as $300,000. However, price growth is not evenly distributed throughout the city, with some suburbs experiencing significant annual growth while others have negative growth.
Multiple factors have contributed to the growth in house prices, including increased confidence in the mining industry, a decrease in the unemployment rate, and population growth in the metro area. However, it's important to note that Perth is not immune to the economic challenges faced by cities on the east coast, and the rising interest rates may eventually impact housing demand.
Average listing time
The average house listing time in several Perth suburbs is remarkably low, averaging just 15 days. This is significantly shorter than the expected listing time in a balanced market. Some of the fastest-selling suburbs in Perth include Kingsley, Woodvale, Inglewood, and Heathridge.
Perth rental market
The rental vacancy rate in Perth is currently at 0.5%, resulting in high competition among prospective tenants. Many renters have had to pay the asking price or even more to secure a rental property, especially in the city center. This high demand has led to stricter rental application requirements, such as the need for workplace, family, and friend references.
We can help you
If you are looking to sell, lease, buy, or rent a property in Perth, HKY Real Estate is here to assist you. As an independently owned real estate agency, we have a proven track record of success in the Perth market. Contact us today to get started on your property journey.
FAQs about the current Perth property market
If you have any further questions about the current state of the Perth property market, don't hesitate to get in touch with us. We are here to provide you with the information and guidance you need.