Perth property market update February 2016

Just a few factors affecting the Perth rental market….
Recent stats in the media reflect the previous quarter of Oct-Dec 2015. Although consumer confidence in WA continues to weakened, January saw an improved month for rentals and sales. Summer months are notoriously the best month for renting but we expect the market to slow again as summer comes to close.

First Home Owner Grants: First home owner grants for new dwellings approved in the year to December 2015 totalled 8,984 which is the highest annual number of grants approved since year 2000. This is a 1,093 increase compared to a year ago. Many would be tenants are taking advantage of the softening market.

Population: Overseas migration to WA is down by 63.6% and interstate migration down 18.4%, both on a quarterly basis since June 2015.

Interest Rates:  Although interest rates are at a record low, this factor alone has done little to stimulate activity over the past 12 months given the strength of socio-economic forces that are stifling investment and confidence in WA.

Rentals: Properties listed for rent this week is down to 9,736 from 10,104 this time last month however the average rent remains at $400/week and vacancy sitting at 6.0%.  The vacancy rate is expected to increase further as the record level of new dwellings commenced in the booming years of 2013 and 2014 are completed in 2016 and 2017.

Sales: Property listings were up from around 15,000 in December to 15,375 the week ending 26th February, while sales too were up over 150 homes compared to end of January.