Perth’s property market experienced some positive signs over the last month as unit prices increased for the first time since June 2018.
Unit prices lifted by 2.8% with median prices now sitting at $344,672 for the September Quarter according Domain’s latest data. Despite this increase experts are not quite convinced that the market is improving with prices currently sitting 1.9% lower than what we saw the same time last year.
Property experts at Domain say that while Perth’s house prices have been falling, the pace of this decline has been much slower than what we saw a year ago. This is a good indicator that Perth is starting to find positive ground again.
Although there has been some increases in mining activity in WA, Bankwest chief economist Alan Langford says that the weak income growth, uncertainty about job security and low population growth are all factors weighing heavy on Perth’s market.
With a staggering 2% population growth back in 2012, Mr Langford noted that current activities in the mining sector aren’t going to cause a similar spike anytime soon but that some more investor activity could be on its way due to increasing rents and rising yields.
Despite hesitation from some property experts, according to REIWA president Damian Collins “While the worst of the market downturn appears to be behind us, the results of the September 2019 quarter reveal favourable conditions for buyers and investors”.
Perth Rental Market
Perth’s rental market has continued to remain strong against a subdued sales market, with median rents sitting at $350 ($360 for houses and $330 for units).
The current rental market is yielding an average of 3.8% for houses based on a $480,000 median house price and $360 median rent. Units are proving to be a stronger asset with an average yield of 4.9% based on a $344,672 median unit price and $330 median rent.
At the end of October REIWA members reported 5,981 properties for Rent in Perth which was 3% lower than levels seen at the end of September, and 18% lower than levels reported 12 months ago.
Leasing activity decreased 0.2% during the last week of October with 1,029 properties leased.
Looking at a snapshot of Perth’s rental market as at October 27, the top rental suburbs are; East Perth, Maylands, South Perth, and Perth. The following suburbs currently have the most available rental properties; East Perth, Perth, South Perth, and Mandurah
Perth Sales Market
There were fewer sales throughout the September 2019 quarter with REIWA data showing 7,050 sales which was 4% lower than the June 2019 quarter and 16% lower than volumes seen the same time last year.
According to REIWA president Damian Collins “it’s typical to experience a decline in sales during the September quarter as West Australian are less inclined to search for property during winter.
Perth’s top selling suburbs for the September 2019 quarter remained the same as the June quarter:
Baldivis, Canning Vale, Morley, Dianella, and Gosnells.
The suburbs that recorded the biggest improvements in house sale activity were Floreat, Wellard, Success, Atwell, Craigie.
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