WA property: What's driving Perth's property listings collapse? - WAtoday

Gavalas said the WA government recently announced initiatives to attract skilled migrants and international students to the state would likely put further strain on Perth’s low housing supply, particularly in the city’s extremely tight rental markets.

CoreLogic’s latest report shows the Perth property market has gained 0.3 per cent in the week ending May 14. It’s up 1 per cent for the month and 1.6 per cent in 12 months.

In popular coastal suburbs such as South Fremantle there are three houses for sale, while in Ocean Reef there are six houses currently listed. In the more affordable eastern suburbs, Mount Nasura has five houses for sale and Koongamia just one. Closer to the city, Winthrop has no houses for sale.

Perth property expert Trent Fleskens said as supply tightened, buyers are having to accept properties with less desirable amenity.

“There’s about 900 people entering the state a week, that’s 450 dwellings they would be consuming each week from our rental and sales base,” he said.

“Where we had 17,000 properties for sale in 2019, we now sit at just over 6000. This is now having a real impact on the mobility of those without a roof over their heads, but also now those with one.”

Fleskens said the lack of supply was now so critical that was overwhelming any downside pressures of affordability to drive house prices higher and higher.

“The skill of buying a house has now shifted from the ability to negotiate value in a deal to simply the ability to secure the property in front of a queue of tens of other people in the same position as you; at whatever price is necessary,” he said.

“We also have east coast buyers representing upwards of two thirds of buyer enquiries and sales in suburbs below the median house price.

“They are chasing high rental yields and come with the confidence of their positive experiences in NSW and VIC over the last decade.

“Western Australians are continually being beaten to the punch by the confident east coast investor.”

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