Perth median house price drops, but rents holding strong: REIWA

Perth’s median house price has dipped further since the close of June, but rents are holding steady, according to the Real Estate Institute of Western Australia’s (REIWA) latest July property price data. 

The preliminary data from REIWA shows the median price down 0.2% to $540,000. REIWA president David Airey notes that this may be due to weaker market activity in the centre of the metropolitan area.

“Our analysis suggests Perth’s median price for the three months to July looks to have fallen 1.8% from the market peak in the three months to April,” Airey said.

Turnover was also trending downwards by 10% on June and actually close to the April period.

Sales increased in Bayswater and Bassendean in July, by 10 transactions to 84 together. Joondalup also saw an increase, of 11 transactions to 64.

However, these were stand outs.

Belmont saw sales drop by 21 to 37, the western side of the City of Stirling dropped 21 to 114, the City of Swan dropped 21 to 37 and Gosnells dropped 19 to 144.

The western suburbs dropped the most prominently, by 44%. This took the sales down to 62.

Airey pointed to weak first time buyer activity for these soft results.

“Listings fell right across all sub-regions of Perth but the south east region through Armadale and Gosnells saw the strongest drop, with listings falling 11% and removing 167 properties from market,” he said.

Despite this, the rental market is holding steady and has done for three months. median rent current sits at $450 per week – or $460 per week for a house and $435 per week for an apartment, unit or villa.

The Cities of Canning and Kalamunda both softened by $10 to $440 per week, while South Perth and Victoria Park dropped $20 to $450 per week.

Rental listings across Perth were up 4% with the greatest increase seen in the southeast subregion through Armadale and Gosnells, along with the City of Perth.

“Despite the general increase in rental listings, some areas saw a tightening in these with the biggest fall being noted in the western part of the City of Stirling, down 37 properties to 292,” Airey said.