EOFY – Property Update
What a wild ride it has been!
At the beginning of last financial year, historically low stock levels of 3253 listings (REIWA 15th June 2024) and other market factors combined to make the perfect real estate storm.
Buyers were competing hard to secure a home and were prepared to pay for the privilege.
By September 2024 some in the real estate industry were calling it.
Stock levels were on the way up.
Surely the madness couldn’t last?
As we go into winter 2025 the stock levels have surprisingly, been trending back down sitting currently at 4073 listings (REIWA 18th June 2025) from 4,744 just 4 weeks ago.
Money’s getting cheaper with the cash rate at 3.85%.
And to top it off the state is screaming out for labour, so still retaining full employment.
This is not a background for a slowing real estate market.
“Perth’s median house price increased 0.6 per cent in May to $780,000.
This was 18.0 per cent higher than at the same time in 2024.
The median unit price also increased, rising 1.9 per cent over the month to $535,000.
This was 21.0 per cent higher than a year ago.”
REIWA President Suzanne Brown said the conditions underpinning price growth remained.
As we go into the back half of 2025 the consensus view seems to be one of strong price support going forward.
There is also currently a “movement to value” as the unit market performs the best as a segment, with owner occupier buyers eaking out the cheapest accomodation in near city locations.
This means previously unfavourable older style apartments in suburbs like South Perth, Victoria Park and Burswood are now flavour of the month.
Building new homes remains expensive (the new normal) and continues to drive the argument for high established house prices.
As a local Town of Victoria Park Agent, I sold 21 properties over the million dollar mark in the last financial year.
It sounds impressive until you do the replacement cost maths:
To buy the block and build the home would still cost in most cases, more than the sale price.
This says to me that higher sale prices are here to stay and will continue to trend up for quality established homes.
Going forward the biggest challenges for home sellers will be managing the changing market sentiment.
We are now seeing properties come to the market and not sell, as home seller expectation is stuck in excited 2024 mode, expecting frenzied FOMO buyers.
While at the coalface, buyers are now beginning to carefully consider their options, are more reserved and discretionary after nearly four years of unchecked price increases.
Navigating this changing market is an exercise in pop psychology and understanding buyer sentiment.
Positioning properties for sale correctly, pricing appropriately so as to engage with buyers, but not cap possible sale outcomes.
We have seen it before (and will see it again) as the market continues its roller coaster ride into the future.
If you are beginning the conversation of selling and would like some insight into the changing market, feel free to get in touch for a confidential discussion.
Derek Baston
0417 99 23 24
sales@bastonandco.com
