Property prices rose in June and rental market showing signs of moderation
Property prices experienced another rise in June. The median sale price for houses reached a new record of $660,000, reflecting a 1.5% increase from $650,000 in May and a 17.9% rise from June of the previous year.
The median sale price for units also saw an increase, rising by 1.3% to $440,500, which is 10.1% higher compared to last year.
REIWA CEO Cath Hart noted that although house prices are setting new records, unit prices have yet to surpass their peak of $450,000 from 2014. She expects that if the current growth trends continue, unit prices might soon exceed this previous high.
Cath Hart brings over two decades of leadership in both government policy and private sector advocacy to her role as Chief Executive Officer of the Real Estate Institute of Western Australia (REIWA)
This positive trend is promising for long-term unit owners awaiting capital appreciation and could potentially spur new apartment projects. Currently, higher construction costs have led developers to focus on more expensive units, but rising prices might encourage the development of more affordable housing options.
The suburbs with the highest growth in June were:
Queens Park: up 3.4% to $553,000
Bullsbrook: up 2.8% to $575,500
Langford: up 2.4% to $512,000
The Vines: up 2.3% to $875,000
Wannanup: up 2.2% to $690,000
Other high-performing suburbs, including Bertram, Piara Waters, Caversham, Seville Grove, and Leeming, also showed growth of 1.8% or more during the month.
Ms. Hart remarked that despite a slight softening in the rental market, home sales remain robust, with properties selling quickly. She emphasized that this trend is unlikely to change soon, making the market challenging for buyers. Prospective buyers are advised to secure their financing in advance to improve their chances when making an offer due to the competitive nature of the market.
Stay strong everyone! We are doing our best for you.
We at Renticulate are keeping a close eye in the shifts in the rental space, ready to find ways to alleviate this rental crisis, tackling issue by issue. You can be a part of it by writing to us at hello@renticulate.com or join our discord server below to kickstart the Renticulate team in designing a service that may alleviate issues to renting.
