Yanchep and Butler perform well in housing market

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Yanchep performed well in the median house sale price category during May while Butler, which also recorded a big increase in median rent, was among the suburbs to record fast median selling times. File picture

YANCHEP while not among the suburbs to record the biggest increase in median house sale price during May was among the suburbs to perform well, according to REIWA.

But the suburbs to record the biggest increase in median house sale price during May were North Perth (up 4.5 per cent to $1.1 million), Wembley Downs (up 2.7 per cent to $1.31m), Langford (up 2.6 per cent to $380,000), Wilson (up 2.5 per cent to $610,000) and Bedford (up 2.3 per cent to $750,000).

Along with Yanchep other suburbs to perform well were Meadow Springs, Brabham, Kardinya and Attadale.

REIWA president Damian Collins said May was another solid month of growth for the Perth property market, which he said was an encouraging sign that the recent increase to the cash rate had not stifled demand.

“Based on what we’ve seen so far this year, Perth is on track to achieve REIWA’s forecasted 10 per cent price growth by the end of the year,” he said.

Perth’s median house sale price was $525,000 during May, with reiwa.com data showing 64 Perth suburbs recorded price growth during the month.

“Price growth is widespread across Perth, with REIWA agents from Mandurah to Joondalup reporting strong market conditions.

“(But) despite the fact prices are rising, Perth continues to have the most affordable median house sale price of any capital city in the country.’’

Mr Collins said properties in Perth were still selling fast with reiwa.com data showing the fastest-selling suburbs in May were Cooloongup (six days), Bedford (seven days), Heathridge (seven days), Melville (seven days) and Waikiki (seven days).

Other suburbs to record fast median selling times were Woodvale, Kingsley, Piara Waters, Butler and Camillo.

During May Perth’s median rent price increased $10 to $470 per week.

“This is the second month in a row that the median rent price has increased.

“While market conditions are challenging for tenants, we continue to have the most affordable rental environment in the country.

The suburbs to record the biggest increase in median rent during May were Como (up $40 to $545 per week), Butler (up $15 to $420 per week), Dianella (up $15 to $465 per week), Secret Harbour (up $15 to $475 per week) and Armadale (up $10 to $350 per week).

It took a median of 16 days to lease a rental during May, which was the same as April and two days faster than May 2021.

The suburbs that recorded the fastest median leasing times during May were Seville Grove (10 days), Harrisdale (12 days), Butler (12 days), Success (12 days) and Alkimos (13 days).

Other suburbs to experience fast median leasing times were Bassendean, Clarkson, Gosnells, Balga and Duncraig.

Meanwhile the Housing Industry Association (HIA) said the number of loans issued for the construction or purchase of new homes continued to remain above pre-pandemic levels.

HIA economist Tom Devitt said the Australian Bureau of Statistics (ABS) lending to households and businesses data for April provided statistics on housing finance commitments.

“While loans for new homes declined by 5.9 per cent in April 2022, this still leaves the month up by 10.7 per cent on its 2019 counterpart,’’ he said.

“Lending for the last three months is also up by 15.2 per cent compared to 2019.

“Lending to all segments of the market – first home buyers, other owner occupiers, and investors – remains well above their pre-pandemic levels.

“Lending for renovations, in particular, is sitting at almost three times pre-pandemic levels.

“At the end of 2021, there were 75.7 per cent more detached homes under construction than pre-Covid.

“There are also more homes approved and waiting commencement than in any previous cycle.”

On June 1 Premier and Treasurer Mark McGowan said the latest ABS national accounts data confirmed Western Australia had achieved a soft landing, with continued growth in the domestic economy during the March quarter and the strongest growth of the states over the pandemic.

Mr McGowan said the latest data showed that despite Omicron in the WA community, the domestic economy grew 2.2 per cent in the March quarter.

“This was underpinned by growth in government spending, particularly on health, as well as continued growth in business and government investment, with household consumption steady,’’ he said.

“Growth in WA’s domestic economy accelerated to 7 per cent over the year to March, the strongest growth since early 2013.

“More than half of this growth was due to strong household spending.

“Government investment increased by 18.5 per cent over the 12 months to March 2022, underpinned by investment in transport infrastructure.

“Dwelling investment grew by 13 per cent, given increased activity in the housing construction market.’’

Mr McGowan said since the start of the pandemic, WA’s domestic economy had grown by 8.8 per cent, the strongest growth of all states and more than double the growth in rest of the nation, which grew by 4.2 per cent.

“While these are excellent results, we know that some businesses have done it tough as we removed border controls and transitioned to living with the virus,’’ he said.

“That’s why we have committed almost $1.7 billion to deliver support to businesses experiencing hardship throughout the pandemic.’’