It’s a tale of two cities for the Perth property market

There was good news and bad news for the property market in July.
There was good news and bad news for the property market in July.

IT continues to be a tale of two cities in Perth, with the rental market showing improvement and sales languishing.

The rental market has been gaining momentum since January and 54 per cent of suburbs recorded an increase in leasing activity in July according to Reiwa.

The top five suburbs each increased more than 114 per cent.

“During the month, the suburbs that saw the biggest spike in leasing activity were Ballajura, Harrisdale, Balcatta, Mosman Park and Dawesville, which more than doubled their leasing activity compared to June,” president Damian Collins said.

Reiwa.com data showed rent prices remain stable in Perth, with the overall median rent sitting at $350 per week during July.

House and unit rents also recorded no change, holding at $360 and $330 per week respectively throughout the month.

“There were 23 per cent of suburbs in the Perth region that saw their median rent price increase,” Mr Collins said.

“Three of the top 10 suburbs which saw the highest increase were from the luxury market, including Subiaco, Nedlands and Mosman Park with rents rising over $650 per week.”

At the end of July, reiwa.com data showed listings for rent decreased five per cent to 7074 properties.

In the sale market, prices declined again in July, down 0.5 per cent according to CoreLogic’s latest home value index.

The median house price settled at $490,000.

The top end of the market recorded a more positive result.

“CoreLogic data shows that Perth is the only city other than Sydney that has seen the top end of the market doing better than the lower end, which we have seen this month with the demand for the luxury market increasing across leasing and sales activity,” Mr Collins said.

“The top performers which saw an increase to their median price in July were Applecross with 7.8 per cent growth to $1.52 million, Currambine with 3.1 per cent, Mosman Park with 2.5 per cent, Bassendean with 2.1 percent and Kingsley with 1.4 per cent.”

Sales activity decreased 5 per cent over the month with 2318 properties sold in July.

“We saw a decrease of 10 per cent in the number of units sold over the month however there was also a 10 per cent increase in land sales,” Mr Collins said.

“The suburbs that saw the largest growth in sales activity include Leeming, Kelmscott and Yokine.”

Listings for sale continued to decline, with 14,195 properties available on reiwa.com at the end of the month, eight per cent lower than the same time last year.

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