Our highly anticipated first webinar on the 2022 Property Update saw over 40 estate agency executives join Courtney Worrall, Professional Services Banking Executive Western Australia, to hear the latest information.
Mark Browning – Head of NAB Real Estate Valuations and Advisory, and Rod Davidson – Director of Acumentis, Shared Real Estate Marketplace and Realtor Market Insights and Insights.
The Perth market hit a new high, the first in almost 8 years, in April 2022, with the median home value surpassing the $550,000 mark for the first time. This is a monthly increase of +1.1% with +3.3% gain in value recorded since the beginning of the calendar year. Annualized growth is sustainably higher at +6.7% over the last 12 months.
After seeing housing values provide more modest growth in the second half of 2021, the reopening of domestic and international borders in early 2022, greater housing affordability, a strong mining sector and job market, combined to a limited stock available for buyers, have given new impetus to 2022.
Focusing more in depth on the first months of 2022, despite a lack of available stock, business activity remains strong with widespread and healthy sales results. So, in isolation, Perth home values are up +3.3% year-to-date, while unit values are up a more modest +1%. In annual comparison, housing values are on the rise by +6.7%, while unit values are up by +4.7% over the same period.
The persistent imbalance between scarce supply and high level of demand has continued to support the market in 2022 so far. New listings at the end of April 2022 were around -11% lower than 12 months ago, while total listings show a larger gap, down -19%. Highlighting the good sales conditions, commercial activity increased by +22% over the same period.
Rent growth continues, with house rents increasing by +6.4% over the last 12 months, while unit rents are increasing by +5.6%. Vacancy rates in Perth are now at their lowest level on record, at just 0.5%, as an insufficient supply of available rental properties continues.
Local areas of Perth
For the 12 months to the end of April, all regions contributed to the increase in commercial activity. With respect to the central regions of Greater Perth, sales activity strengthened most in the Perth – South East, Perth – South West and Perth – North East regions, all regions of Greater Perth , including the Mandurah region, saw sales activity increase by double digits compared to the same period last year.
House price growth over the 12 months to the end of April, although modest, re-energized in 2022. All regions saw house values increase between +4.6 and +8.5%. The largest value gains were seen in Perth – Inner (+8.5%) and Perth – North West (+7.1%) on a year-over-year basis.
Over the past quarter, home value growth has improved, albeit at a modest pace. The strongest gains over the quarter were also observed in the Perth – Inner region, up +3%, Perth – North West up +2.8% and the Mandurah region, an extension of Greater Perth, has seen home values increase by +2.8% in the past three months as well.
Unit value gains were also made across all regions over the past 12 months. Leading the Perth – South East and Perth South West regions, with unit value gains of +8.7% and +8.3% respectively.
New listings levels for homes are down -18.4%, but for units there was a +12% increase from 12 months ago. By comparison, total listings for both homes and units remain down more than -19% over the same period.
For agents, the level of rental stock remains a priority, with many landlords seeing the record rise in value levels as a trigger to sell their investment property.
Affordability and interest rate prospects are two key market indicators, along with the range of listings and options for buyers.
If you missed the webinar, you can watch the recording here.
See the video