Property market recovery accelerates in March quarter

The March 2021 quarter continued the momentum of the latter half of 2020, with strong demand from buyers leading to rising median house sale prices. CoreLogic data shows the Perth home value index increased almost five per cent in the first three months of the year, prompting REIWA to revise its 2021 price growth forecast from 10 to 15 per cent.

Perth sales market

Median house and unit sale price

Perth’s median house price increased to $500,000 in the March 2021 quarter, while the median unit sale price increased to $385,000.

There were 254 suburbs across Perth that recorded an increase in median house sale price and 121 that recorded an increase in median unit sale price.

The top growth suburbs for median house sale price during the quarter were Bicton (up 18.7 per cent to $1.11 million), Maddington (up 12.2 per cent to $318,000), Palmyra (up 12.1 per cent to $712,000), Hilbert (up 10.1 per cent to $368,250) and Orelia (up 9.6 per cent to $263,000).

The top growth suburbs for units were Joondalup (up 13.6 per cent to $365,000), Maylands (up 13.3 per cent to $350,000), Innaloo (up 13.2 per cent to $445,500), Rockingham (up 13 per cent to $266,000) and Yokine (up 8.1 per cent to $306,000).

Sales activity

The preliminary sales figure for the March 2021 quarter sits at 11,037, but this is expected to lift closer to 13,000 once all sales have settled.

The five suburbs to record the biggest increase in sales volumes during the quarter were Ferndale, Jindalee, Mount Pleasant, Seville Grove and Mandurah.

Listings for sale

There were 8268 properties for sale on reiwa.com at the end of March 2021, which is 0.9 per cent higher than the December 2020 quarter figure but 32.8 per cent lower than the March 2020 figure.

Although there was a marginal increase in listings during the quarter, overall listings remain the lowest we have seen in many years. The shortage of listing stock is continuing to fuel competition amongst buyers and putting upward pressure on sale prices.

Median days to sell and discounting

Competition amongst buyers was high during the March 2021 quarter, with the median time to sell declining to 15 days - the fastest Perth has seen in 15 years.

The March 2021 quarter figure is six days faster than the December 2020 quarter and 28 days faster than the March 2020 figure.

In a testament to how strong the Perth market is performing, only 24.8 per cent of sellers had to reduce their asking price to achieve a sale during the quarter, which is 8.3 per cent fewer than the December 2020 quarter and 25.1 per cent fewer than the March 2020 quarter. This suggests most sellers are either meeting or exceeding their asking price.

Looking at buying or selling a property? Give us a call today on 08 9339 7079 to discuss how we can help you with your property journey.