Perth dwelling values fell by 0.5% over the past month and a further 8.8% over the past 12 months. According to property expert Michael Yardney, these ongoing trends in the Perth housing market can be attributed to a mix of economic and demographic conditions overlaid with a tightening credit environment.
Despite the deceases in property values, this presents a great opportunity for a countercyclical investment as Perth values are now amongst the most affordable of Australia capital cities with the median house price now sitting at $454,774.
Figures for the 2018-2019 period also revealed that WA’s mining industry has achieved record employment figures which are all good signs for population and job growth which will help to support a strong platform for housing demand in Perth.
While we have seen a tightening on lending, the state government is helping to support a market recovery through modifying the Keystart home loan scheme to accommodate new income limits and increase eligibility. Moreover, there is now a 5% deposit initiative to increase first home buyer activity, improve affordability and eliminate the need for lenders mortgage insurance. With all this upside, we are seeing signs for a real rebound to help WA bounce back again – Craig Gemmill, managing director for Gemmill Homes.
Perth Rental Market
Over the past 12-18 months, WA has gone from 7% to 2.3% rental vacancy rates. According to property experts at yourinvestmentpropertymag.com.au “these are positive signs, and now not only do we have green shoots, we have a bit of fertiliser to put on the lawn too”.
At the end of September REIWA members reported 6,187 properties for Rent in Perth which was 2% less than the previous week, 6% lower than levels seen at the end of August, and 19% lower than levels reported 12 months ago.
Leasing activity increased 1% during the last week of September with 1,019 properties leased with the overall median rent sitting at $350 / week.
Sales & Rental Trends
Sales activity increased 24% during the last week of September with REIWA reporting 675 transactions compared to 551 on the previous week.
The strong sales activity is the highest weekly reading since August 2017.
According to REIWA this increase can be attributed to a 21% increase in house sales, 16% rise in unit sales, and a 50% lift in vacant land sales during the end of September. The affordability of the land market demonstrates a positive movement and represents great opportunities for Perth buyers.
Perth’s Top Rental Suburbs
Looking at a snapshot of Perth’s rental market as at September 29, the top rental suburbs are Scarborough, Perth, East Perth, and Fremantle. The following suburbs currently have the most available rental properties: Perth, East Perth, South Perth and West Perth.
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