Homebuyers in Western Australia are starting to lose their edge at the negotiating table as the number of available properties up for grabs declined.
Figures from SQM Research showed a 22% monthly and 25.3% annual fall in new listings in Western Australia in April, bringing the total listings down 9.8% monthly and 15.5% yearly.
Resolve Property Solutions buyers agent Peter Gavalas said the freefall in listings numbers is derailing homebuyers' plans to get into the market.
“With fewer options on the table, many buyers are struggling to find properties that meet their needs and when they do, the increased competition means they generally have less room to negotiate on price, creating a perfect storm for homebuyers,” he said.
Figures from CoreLogic in April showed a 0.6% growth in Perth’s median value to $572,800.
Competition for homes is also being supported by the growth in the state’s population — figures from the Australian Bureau of Statistics showed a 1.8% growth in Western Australia’s population, the second highest gain in the country.
Mr Gavalas said the state’s initiatives to attract skilled migrants and international students will put further strain on Perth’s low housing supply, particularly in the city’s extremely tight rental markets.
“The shortage of fresh stock isn't just impacting owner-occupiers but is also creating challenges for investors, spelling further trouble for the city’s rental market,” he said.
According to PropTrack, Perth’s vacancy rates remained tight in April at 0.98%. While this represents a slight increase from the previous month, the city’s current vacancy rates are still 62% lower than during the onset of the pandemic in March 2020.
Across the broader Western Australian rental markets, the vacancy rate was at 1.43% in April, which represents a 59% decline since March 2020.
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