Perth's property market is experiencing an unprecedented squeeze, with the number of homes available for sale plummeting to a record low and sparking a frantic summer scramble among desperate buyers. New data reveals a market that has effectively dried up, leaving prospective homeowners in a fiercely competitive race for the few available properties.
Record Low Listings Define a Tight Market
The latest figures from the Real Estate Institute of Western Australia (REIWA) paint a stark picture. In December 2023, the total number of properties listed for sale across the Perth metropolitan area fell to a mere 4,312. This represents a dramatic 25.6 per cent decline compared to the same month the previous year and is the lowest number of listings ever recorded in REIWA's history.
This critical shortage is not confined to a single month. The data shows a consistent downward trend, with listings for the entire December quarter of 2023 also hitting a record low of just 5,183 properties. This intense constriction of supply is the primary engine driving the current market frenzy, as more buyers chase fewer and fewer homes.
The Buyer Frenzy and Soaring Clearance Rates
The direct consequence of this historic shortage is a market characterised by extreme competition. Buyers are finding themselves in bidding wars, needing to act with exceptional speed and often paying above the asking price to secure a home. REIWA CEO Cath Hart emphasised the severity of the situation, stating that low stock levels have been a persistent issue throughout 2023 and are now acutely impacting market activity.
The proof is in the sales results. Auction clearance rates have skyrocketed, reflecting the intense demand. In the week leading up to December 17, Perth's clearance rate reached a staggering 52.4 per cent. This figure is more than double the rate seen during the same period in 2022 and significantly higher than the national average, underscoring the unique pressure cooker environment in the Western Australian capital.
Suburban Hotspots and Future Outlook
The competition is pervasive, but certain suburbs are feeling the heat more than others. Areas like Willetton, Duncraig, and Rossmoyne have emerged as particular hotspots, where buyer demand is exceptionally high and properties are selling rapidly. The combination of attractive locations, good amenities, and limited supply is creating micro-markets of intense activity within the broader city-wide scramble.
Looking ahead, experts see little immediate relief for buyers. The traditional summer slowdown has been overtaken by this sustained shortage. While some new listings are expected in the new year, the fundamental imbalance between strong demand and critically weak supply is predicted to continue placing upward pressure on prices and maintaining challenging conditions for those trying to enter the market or upgrade their home. The Perth property market's summer of 2024 is defined not by relaxation, but by a relentless scramble for a shrinking pool of available houses.
