Overall consumer confidence has been building in WA as measured by the Chamber of Commerce in WA (CCIWA). As per the graph below, we are seeing the highest level of short-term confidence since 2013 which is a good measure of the improving stability of jobs and the economy that we should see flow through to the housing market.
Perth Rental Market
Since September 2017, Perth has experienced a continual decrease in the number of properties for rent. Over that time, we have seen a 2.4% decrease since January 2019 and around a 13% decrease since this time last year. (Investor Edge)
According to REIWA data, there were 6,731 properties for rent in Perth at the end of last week, which was 1% less than the previous week, 7% lower than the levels seen four weeks ago and 17% lower than the levels seen this time in 2018.
With the number of rental properties decreasing, vacancy rates have also remained steadily low averaging around 2.9% during August which is creating more pressure on rental prices across many suburbs. Many properties coming up for lease renewals are increasing rent prices despite median rental prices sitting around $350 for the past 12 – 18 months.
The highest yielding suburbs in Perth are getting around 5% with the highest being 5.8% with most situated around Kwinana.
The below is a snapshot of the Perth rental market for the week ending August 25, 2019.
Sales & Rental Trends
Sales activity remained stable in Perth throughout August however REIWA stats report a 6% fall in house sales, despite a 14% increase in unit sales and a 26% increase in vacant land sales mid-August. The sales volumes seen throughout August were around 7% lower than levels seen a year ago.
Perth is on par with demand levels as this time last year however we have seen a gradual downward trend month on month since 2013 which indicates a trend that needs breaking to see a recovery in the market.
Median house prices are sitting around $490K. Around this time last year, median house price was sitting around $505K so we’ve seen a slight dip down over the past 12 months.
The below is a snapshot of the Perth sales market for the week ending August 25, 2019.
Perth’s Top Rental Suburbs
Looking at a snapshot of Perth’s rental market as at August 25, the top rental suburbs are Perth, East Perth, Maylands and Scarborough. The following suburbs currently have the most available rental properties: East Perth, Perth, South Perth and Scarborough.
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