November 2019 showed a continued reduction in rental listings and a decrease in rental vacancy rates, leading REIWA Deputy President, Lisa Joyce to believe that Perth is approaching a tipping point for rental prices to begin increasing.
“We’re starting to see a steady decline in the vacancy rate, a steady decline in rental stock, a contraction in the number of days on market and we haven’t hit the peak of the market for 2019,” she said.
Despite these indicators, rental prices are yet to increase with median rent prices remaining unchanged at $350 overall, with $360 for houses and $340 per week for units.
At the end of October, Perth property values were down 0.4% but the decline was the smallest in 14 months. While the decrease in property value is slowing, Perth remains the cheapest capital city to own property with a median value of just $451,815.
Perth Rental Market
Image source: REIWA
In the last quarter, 172 suburbs recorded an increase in leasing activity with 110 suburbs recording an increase in median weekly rent. This comes off the back of two quarters of decreasing vacancy rates, now sitting around 2.5%.
“Perth’s rental market appears to be building on the momentum of the latter half of 2019” – REIWA Deputy President, Lisa Joyce.
While there were recorded increases in median rent prices by 110 suburbs, the overall median rental price for Perth in November 2019 remained at $350.
There were a reported 6,160 properties for rent in the last week of November, up from 5,981 four weeks ago.
This week there were 1,003 properties leased, 597 houses and 406 units, a slight decrease from the same week last year that recorded 1,020 properties rented.
The top Perth rental suburbs in the last week of November 2019 were Perth, East Perth, Scarborough and West Perth.
The Perth suburbs with the most available rental properties are Perth, East Perth, South Perth and Mandurah.
Perth Sales Market
Image source: REIWA
Perth real estate recorded a reduction in property values, decreasing by 0.4% in November 2019 compared to October 2019, and 8.7% lower than November last year.
The average price of a Perth house fell by 0.4% in November 2019 compared to October 2019, with the price decreasing by 1.8% in the last quarter.
Prices also fell for units for sale with November seeing a 0.8% decrease compared to last month, and a 1.1% decrease over the quarter.
These latest results make Perth the most affordable Australian capital city to own property.
Image source: Core Logic
Top selling suburbs this week North of the river: Hillarys, Innaloo, Bassendean and Ellenbrook.
Top selling suburbs this week South of the river: Armadale, Canning Vale, Thornlie and Baldivis.
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