The Western Australian property market shows no sign of slowing down this year, with January data revealing Perth is now the fastest growing major market in the country.
This marks a significant shift for the Perth property market, which has endured its fair share of hardships over the last few years. We have emerged from a dominant buyer’s market and are now squarely in a seller’s market, with buyer’s needing to act a lot faster to secure a sale.
CoreLogic data shows the Perth home value index increased 1.6 per cent in January and 3.8 per cent compared to three months ago. To put that into perspective, Sydney and Melbourne increased just 0.4 per cent over the month and were up 1.6 per cent and 2.1 per cent respectively compared to three months ago.
Over the next 12 months, we expect this positive momentum to continue, with REIWA anticipating the Perth median house price will increase between six and 10 per cent in 2021.
In January, reiwa.com sales data showed the median house price had increased to $490,000. A closer look at the data for the month shows there were 53 suburbs to experience median house price growth.
Yangebup saw the biggest increase in price in January, with its median lifting 4.1 per cent to $447,500. Mandurah was second, with its median up 3.9 per cent to $265,000 and Mount Hawthorn was third, with a 3.3 per cent increase to $952,500. Rounding out the top five were Balcatta and Wannanup, which both saw its median increase 3.1 per cent to $505,000 during the month.
Other suburbs to perform well in January were Bassendean (up three per cent to $510,000), Hillarys (up 2.8 per cent to $873,500), Banksia Grove (up 2.8 per cent to $389,000), Spearwood (up 2.7 per cent to $445,500) and Mount Pleasant (up 2.6 per cent to $1.205 million).
Although overall sales activity in January was down slightly compared to December, there were still 15 suburbs that saw sales increase during the month. The five suburbs to experience the biggest increase in sales compared to December were Rockingham, Wellard, Forrestfield, Yokine and Nedlands.
The January sales data for Perth is very promising and remains in line with REIWA’s 2021 projections. Although WA has recently experienced a small setback in its COVID-19 fight, there is no reason the Perth property market won’t continue its strong recovery, provided there are no sustained lockdowns.