Perth’s fastest-selling suburbs have been revealed with new data also showing the areas where housing prices have boomed since the start of the pandemic.
REIWA statistics from the December quarter showed Kingsley, Leederville and Winthrop were the fastest-selling suburbs, with properties snapped up on average within six days.
Rounding out the top 10 were Darch (eight days), Carine, Coolbellup, Lake Coogee, Leeming and Padbury (nine days), and Kinross (10 days).
A year prior, the quickest Perth suburb to sell in was Willagee, with a house taking 14 days on average to sell.
One Residential real estate agent Tony Papineau, who sells in the Winthrop area, said the last four or five houses he listed had been purchased within days of being on the market, forcing the first home opens to be cancelled.
“People are placing bids above asking price and putting a condition on it that they want to secure the property before it goes to the first home open and you get another 20 people turn up,” he said.
“I think the low interest rate has got a lot to do with the increased demand as well as people not spending a lot on travel anymore due to the pandemic travel restrictions, so that trip to Europe that was going to cost $20,000 becomes a deposit towards a house.”
But the pandemic hasn’t just meant people have more savings to spend. It has also led to a surge in housing prices for properties in the lower 25 per cent of the market.
CoreLogic data revealed a pocket of Perth’s southern suburbs fared best, with Medina, Calista, Orelia and Leda recording median dwelling value increases of 11-15 per cent between March 2020 and January 2021.
For properties worth more than $400,000, Burswood had the highest jump, with the median dwelling value increasing by 12.1 per cent to $585,941.
Lakelands rose 11.1 per cent to $421,471 and Eglinton and Kinross both increased 10.7 per cent to $412,037 and $531,459 respectively.
Inner city suburbs including Perth, Highgate, Northbridge and West Perth, however, recorded drops.
CoreLogic head of research Eliza Owen said the surge in price for houses at the bottom end of the scale was due primarily to an influx of first home buyers.
“In Western Australia in December, about 40 per cent of owner-occupier finance commitments are from first home buyers so that’s a really strong level of participation from that cohort and they generally go for more affordable properties,” she said.
“Because of COVID-19, the Reserve Bank of Australia has had to push interest rates down very quickly to record lows so that’s another reason why we’ve seen such a surge in housing market growth because of that very cheap credit which is incentivising more people to buy.”