Are you a property owner in Perth considering selling? The stars might be aligning in your favour. Perth’s real estate market is currently favouring sellers due to three main factors: an unprecedented surge in demand, robust property values, and an anticipated spring increase in listings. All these factors combine to make now an ideal time for homeowners in Perth to seriously consider selling their properties. As real estate Perth experts, we at ProProperty Group delve into 3 reasons explaining why it’s high time you put that ‘For Sale’ sign up! 

Reason #1: An unprecedented surge in demand and accelerated sales velocity 

Perth’s real estate market has been in the throes of a transformative phase, largely driven by factors that have converged to create a distinctive buying and selling environment. The implications of this shifting landscape are profound for property owners contemplating selling their properties in Perth. 

At the end of May 2023, the number of properties available for sale in Perth, the capital city of Western Australia known for its beautiful beaches and relaxed lifestyle, fell sharply to just 5,885. This significant decrease represents an 8.8% drop from the previous month and a staggering 29.3% drop from the same period a year ago. To understand the gravity of this figure, one needs to glance back over a decade, to mid-2010, to find comparable low levels. This snapshot underlines the pronounced scarcity currently pervading Perth’s property market. 

Interestingly, this scarcity is unfolding amidst a backdrop of successive interest rate hikes—a total of 11 to be precise. In traditional economic thinking, rising borrowing costs generally act as a dampener on housing demand as higher mortgage payments make home ownership less affordable. However, the Perth property market is bucking this conventional wisdom. Despite the rising interest rates, demand for property has remained remarkably resilient. In fact, not only has the demand stayed robust, it has intensified, creating a heated property market. 

This feverish demand is evidenced by the remarkable speed at which properties are being snapped up. Homes are selling at a median rate of 12 days—a pace so swift that it shatters the records held by the Real Estate Institute of Western Australia (REIWA), which has been tracking this data since 1998. The only other time when properties were sold this quickly was in March 2021, during the COVID pandemic, creating a historic context for the current market conditions. 

What’s driving this rapid turnover of properties? The short answer is an imbalance between supply and demand, with the latter outpacing the former. Sales activity has been on an accelerated trajectory, exceeding the number of new listings, resulting in sales being 15% higher than the number of new weekly listings since mid-April. This dynamic has tightened the market, with demand outstripping supply. 

The interplay between this robust demand, accelerated sales velocity, and limited supply has created an intensely favourable environment for sellers. Homeowners considering selling their properties are confronted with a market that has a high number of eager buyers, fast sales, and limited competition—a trinity of conditions that should yield top dollar for their properties. 

This potent combination of factors—heightened demand, rapid sales turnover, and limited inventory—underscores why now could be an opportune time to sell properties in Perth. For homeowners on the fence, this unprecedented market environment could provide the impetus to seize this golden opportunity. 

Reason #2: Strong property values and price resilience 

Perth’s real estate landscape is a testament to the resilience and strength of its property values. Regardless of the fluctuations in economic conditions and the shifting contours of broader market trends, Perth’s property market has proven to be robust, even demonstrating a capacity for growth in challenging circumstances. This resilience offers potential sellers an enticing prospect of lucrative returns on their property investments. 

To appreciate this buoyancy, we must delve into the numbers that capture the market’s performance. Renowned property analytics firm CoreLogic reports that Perth’s property values saw a significant increase of 1.3% in May 2023 alone. This data point, while striking in itself, becomes even more meaningful when placed within a broader time frame. A glance at the quarterly growth shows an even more significant cumulative increase of 2.4% over the three months leading up to May 2023. 

These upward trends in property values suggest potential financial gains for homeowners considering selling. The promise of a handsome return on investment is a powerful incentive for property owners to list their homes for sale. 

However, the significance of Perth’s performance becomes truly evident when contrasted with the broader Australian property market. Perth stands out among the capital cities in Australia as a beacon of resilience. In fact, Perth is the only city where dwelling values have rebounded to record highs. This is a considerable achievement, especially against the backdrop of the overall Australian property market, which saw a 2.4% contraction in the calendar year of 2022. 

Perth’s property market dynamics are further underpinned by a discernible trend favouring standalone houses over units. Data shows that the number of houses available for sale in Perth dipped below 2,700—a level last recorded more than a decade ago, in April 2010. This scarcity of standalone houses, combined with the prevailing demand, adds fuel to the bullish trends in the property values. 

Peering through the lens of price brackets brings another layer of understanding of Perth’s property market. Notably, the most intense sales activity is occurring within the $500,000 to $1 million range. This trend indicates a healthy appetite in the market for mid-range properties. This price bracket, often associated with family homes and desirable suburban properties, is seemingly at the sweet spot of affordability and value, drawing in a steady stream of buyers. 

In contrast, the market for high-value properties, classified as those in the $1 million-plus range, has maintained a relatively steady pace, neither surging dramatically nor dipping drastically. This stability at the higher end of the market reflects the enduring demand for premium properties, potentially from more affluent buyers or those looking for distinctive homes. 

Sales activity in the under $500,000 bracket, typically associated with entry-level homes or smaller units, has experienced some decline. However, this should not be interpreted as a lack of demand. Instead, it could be reflective of the reduced availability of properties in this price range in the current market i.e. buyers are looking for properties under $500,000 but are struggling to find homes that match their requirements. When such affordable homes do come onto the market, they tend to be snapped up quickly by eager buyers ready to seize these opportunities. 

Perth’s property market’s strength and resilience, characterised by robust property values and an enduring demand for various property types and price ranges, present a compelling case for potential sellers. This landscape, marked by its potential for delivering attractive financial returns, is certainly a strong reason for homeowners to consider selling their properties in the current market. 

Reason #3: Anticipation of the spring surge in listings 

Real estate markets worldwide are subject to seasonal fluctuations, with listing volumes typically rising and falling in sync with the changing seasons. Traditionally, the spring season heralds an increase in property listings as homeowners capitalise on the increased foot traffic that warmer weather brings. The Australian property market is no different. 

Historical data shows that, over the past decade, there was, on average, a 19.7% increase in new listings in the spring compared to winter. This trend was broken only last year. However, if the pattern holds true this year, we can expect a significant surge of new listings come springtime.  

The expected surge in spring listings has the potential to tilt the scales of supply and demand in the Perth property market. With a sudden influx of new properties, buyers will have a wider selection to choose from, possibly slowing the rapid sales turnover and easing the pressure on property prices. 

Given these factors, Perth homeowners considering selling might find it more advantageous to list their properties now rather than waiting until spring. By doing so, they can leverage the current scarcity of listings, capitalise on the robust demand, and secure a favourable sale before the expected increase in competition when spring rolls around. 

Not quite ready to sell? If you feel like you want to hold onto your property a little bit longer but still cash in on the surging market, ProProperty Group also specialise in property management Perth. 

Final thoughts 

In summary, the unique circumstances of the current Perth property market—a surge in demand, strong property values, and an upcoming spring surge in listings—make it an opportune moment for homeowners to consider selling. The housing market conditions are clearly tilted in favour of sellers, providing a golden opportunity to potentially make significant financial gains. 

With ProProperty Group real estate agency Perth expertise and in-depth knowledge of the Perth property market, you can navigate these favourable conditions seamlessly. So, why wait for tomorrow when today could be your perfect time to sell? Get in touch with ProProperty Group now and let us help you capitalise on this golden opportunity!