REIWA data revealed that Perth saw over 1,000 sales transactions during the week ending June 21st, which is almost double the 539 weekly average and is one of the highest levels of activity Perth has seen since June 2013.
This can be likley attributed to an increase in land and new home sales which has been stimulated by the new government home building schemes announced earlier in the month with property buyers looking to snap up more house and land packages and off-the-plan properties.
While the new home building activity has spiked sales levels, the established market also saw some notable increases with dwelling sales rising 7% during the middle of June off the back of a 26% improvement we saw during the beginning of June.
Towards the end of June, sales activity decreased slightly due to a decrease in listing stock levels which is 3% lower than what we saw in May and 26% lower than levels seen this time last year.
Perth Rental Market
Perth’s rental stock is absorbing at a rapid rate according to REIWA’s latest stats with listings falling by 17% in May to 4,676, the lowest levels we have seen in Perth since November 2013.
There has been strong demand for rental properties in Perth as we saw a 27% increase in rental property leasing activity in May compared to April, and vacancy rates dropping significantly for a two year period now.
As per the latest REIWA stats, over the last month, the biggest spikes in leasing activity were seen across the following suburbs, Halls Head (33 leases), Nollamara (20 leases), Coolbelup (16 leases), Joondalup (18 leases) and Como (18 leases).
The median rent in Perth has remained stable at $350 and is expected to remain stable until the end of 2020 as rent increases are only being permitted on new rental listings in line with the new regulations around COVID-19 restrictions – occupied rentals cannot have a rent increase until October 2020.
During June 2020, rental properties in Perth sat vacant for an average of 23 days and at Benchmark, our landlords saw an average vacancy period of 6.3 days taking our vacancy rate to just 0.5%.
Perth Sales Market
CoreLogic’s latest home value index shows that dwellings across Perth declined by 0.6% in May although REIWA president Damien Collins said that despite this slight decline, data has shown that over the last month 64% of suburbs across Perth have seen an improvement or stabilisation of property values.
The top 10 suburbs that saw the biggest uptick in median property values include: Ellenbrook, Claremont, Butler, Yokine, Gosnells, Kelmscott, Halls Head, Waikiki and Willetton. According to Damian Collins, seven of these 10 suburbs have a median sales price under the Perth median house price value of $475,000 which suggests that people are taking advantage of properties priced at the lower end of the scale.
Sales listings came down by 3.3.% to 11,299 properties, which is also 30% lower than levels we saw this time last year. Another great sign that supply and demand could be pointing to an upswing in Perth’s property market as stock is getting socked up.
With interest rates still sitting at an all time low, more people are also getting into home ownership as our values remain as one of the most affordable of all the states across Australia, making Perth one of the best value markets to get into right now.
With tax time looming, if you’re looking for an experienced property manager or perhaps considering changing property managers to help you assess your property and maximise your rental returns, contact us today for a free no obligation chat with one of our experienced property managers.
Plus, for a limited-time only, if you’re looking to switch to Benchmark Specialist Property Managers, we’ll offer you an exclusive 2 months free property management to try our exceptional services – you’ll also get to experience the Benchmark difference with a no lock-in contract – ever!