Success Property Market Update 1st Half of 2024
In Q4 2023, Success (which in this report encapsulate sales and rentals in Success and Treeby) recorded a median house price of $690,000, and a median unit price of $367,000. This represents annual (Q4 2022 – Q4 2023) growth of 15.0% for houses and 9.6% for units. During this time total house sales (quantity) increased by 27.9% (to 70 sales) and total unit sales (quantity) grew by 21.1% for unit sales (to 23 sales). There is high demand for properties in Success, with the houses undersupplied. This has created a buffer against cash rate hikes, and with only a small amount of new stock planned, property prices will continue to travel up.
Average house vendor discounts between Q4 2022 and Q4 2023 have continued to grow, to a premium of 3.1%. Average unit vendor discount has swung from a negative to a positive, of 4.4%. Market conditions in Success favour sellers, where buyers must offer above the initial listing price. Q4 2023 saw the highest premium for houses for the past 18 months, whereas it is the first time for units. With only a small amount of new stock planned, this trend will most likely continue upwards. Thus buyers must act fast.
House rental yields in Success was 5.7% in December 2023, higher than Perth Metro (4.4%). This was paired with a 13.8% increase in median house rent in the past 12 months to Q4 2023, to $660 per week, and a 50.9% increase (to 80 rentals) in the amount of houses rented. The unit rental market shows a similar pattern, thus there is high demand overall.
2 bedroom houses have provided investors with +16.3% rental growth annually, achieving a median rent of $500 per week.
Success recorded a vacancy rate of 0.4% in December 2023, which is slightly below Perth Metro’s 0.5% average. Vacancy rates in Success have held steady over the past 12 months and did not spike up the way Cockburn City LGA did. This indicates there is stability in its rental demand. A 0.4% vacancy rate is significantly below the Real Estate of Institute Australia’s healthy benchmark of 3.0%, suggesting quicker occupancy of rental properties in Success. These key indicators create a conducive and sustainable environment for investors, despite the current increase in median sale prices in the past 12 months.
