Perth leads nation as properties sell in 18 days on market

Buyer competition all over the country is leaving vendors ‘swamped’, but it’s turned particularly fierce in one capital city.

David and Stephanie Hampel with baby Vivienne in front of the house that they sold for more than $1m at Willetton, south of Perth. Picture: Colin Murty

Properties in Perth are selling fastest in the nation as buyer competition forces the time it takes to sell a property down in most Australian regions.

Houses in inner and northwest Perth sold in just 18 days on average in the December quarter of 2020, according to the latest market data from property researcher CoreLogic compiled exclusively for The Weekend Australian.

Hobart was the fastest-selling city for units, with buyers snapping up available properties in just 17 days.

The Agency West Australian general manager Stuart Cox said demand in the local market had surged in recent months. Areas which would typically command five to 10 groups each open home were now receiving upwards of 30 as buyers competed for the limited properties available.

“Anything you get coming to the market, by the time it is put up online, the guys are just getting swamped,” Mr Cox said.

 

“It’s being caused by strong confidence in employment, strong confidence in the economy and interest rates being the way they are. The first signs of strong demand haven’t been reflected that highly in property values yet, but demand is certainly through the roof.”

Boutique home developer David Hampel and wife Stephanie noticed the heat in the market last year when strangers approached them and offered to buy the family home they were building in Willetton, south of Perth. While they hadn’t planned on selling, they decided to cash in on the new-found interest after selling an investment property at the start of the pandemic for a loss.

They sold at auction through Ray White’s Jannine Blum for more than $1m after their two-and-a-half week campaign secured 25 registered bidders in December.

“Everyone laughed at the six-figure reserve price we set because they thought it was too high,” Mr Hampel said.

“But we ended up selling for much more at $1.159m.”

Regional and mining areas recorded some of the most significant reductions in time on market. Average selling periods for houses in the Western Australia Wheatbelt reduced by 61 days to a total of 49 between the June and December quarter, while the Darling Downs market in Queensland was down 57 days to a 57.5-day average. Units in the West Australian Bunbury region sold in 53 days on average in December, 86 days faster than in June.

CoreLogic’s research executive Tim Lawless said a resurgence in commodities and tight rental markets could be behind the change.

At the other end of the spectrum, stress was seen in the Sydney market where time on market rose.