The median unit sale price also hit a new record, rising 1.1% over the month to $455,000, representing a 13.8% increase year over year.

Speaking about the findings, REIWA CEO Cath Hart said the market was “experiencing extraordinary conditions with no signs of improvement in the short term”.

“There is clearly a desire and opportunity to buy property at the moment, and it will take a significant shift in demand or supply to ease the pressure on established properties,” she said.

Hart further explained that institute members continue to see “a high number of interested parties” at open houses and “are still receiving many offers that are above the asking price, and some are significantly above it.”

REIWA data showed the fastest house price growth in August 2024 was recorded by the suburbs of Willetton (up 5.6 per cent to $1,125,000), Westminster (up 4.2 per cent to $565,000), Mindarie (up 4 per cent to $1,050,000), Thornlie (up 3.1 per cent to $630,000) and Armadale (up 2.7 per cent to $488,000).

The institute observed that in August 2024, the sale of houses and apartments took an average of nine days, which is the same as in the previous month, but one day faster than in the same period last year.

The fastest selling homes during the month were Parmelia (three days); Clarkson, Rockingham, Spearwood and Yangebup (five days) and Cooloongup, Thornlie, Atwell, Greenfields and High Wycombe (six days).

The number of active listings in Perth stabilised at 3499 at the end of August, up 9.4 per cent on July but down 32.5 per cent on the same period 12 months earlier.

Commenting on the event, Hart said that “strong demand and sales momentum” “continue to keep the number of active listings low.”

Perth Rental Market

Meanwhile, the Perth rental market saw a further slowdown in August, with REIWA data showing the median weekly rent for houses remained stable at $650.

The median weekly rent for a flat was up 12.1 per cent compared to the same period last year, while the median weekly rent for a house was up 8.3 per cent.

The median weekly rent fell to $600, down 3.2% from July but still up 9.1% year-over-year.

Commenting on the findings, Hart said that “after several years of very strong rental price growth”, the Perth market is “showing longer periods of stability”.

“The median rental price for apartments and houses has been stable for six months. The median unit price has also been $600 per week for five of the past six months.”

“We are seeing a slowdown in the annual pace of rental price growth, falling from around 20 per cent at the start of this year to single-digit growth for apartments and houses,” she added.

Stressing that the city market is currently in a “period of change”, Hart advises “landlords of investment properties to discuss local market conditions with their property managers when the time comes for rent reviews”.

“The rental market remains very tight, but the frenetic conditions of the past few years have eased. While there is often still a lot of interest in home listings, property managers are seeing fewer applications,” the CEO said.

REIWA reports that at the end of August, the number of properties available for rent was 2,182, down 12.8% on July but up 33.6% on the same period last year.

“August was the first month since February where the number of rentals exceeded the number of new listings, which explains the decline,” Hart said.

The CEO also noted that “while the number of available properties is down month-on-month, it is significantly up year-on-year, which is positive.”

The average rental period for a property in August was 19 days, which is one day longer than in July and four days longer than during the same period last year.

Hart said that in addition to longer lease terms for properties in higher price ranges, members of the institution are seeing situations where “successful applicants are withdrawing after their property application has been accepted.”

Delving deeper into this trend, Hart highlighted that reluctant applicants may simply conclude that “the property is not right for them” or may apply for a new property unsure whether their current tenancy will be renewed, and then withdraw their application once their application for a new property is accepted.

“This means the property manager has to find another tenant, which impacts the time it takes to fill the vacancy.”

“Conditions vary by neighborhood and price range, so I strongly encourage landlords to discuss local conditions with their property managers,” the general manager said.