Strong rental demand and falling vacancy rates continues to dominate the Perth market. The strong demand in the rental market continued through August with increases to the median rent, listing volumes and days to lease have been reduced.
From an individual suburb level, Maddington was the fastest suburb to lease in August, taking a median of seven days to lease, which was closely followed by Armadale with nine days, Coolbellup and Wanneroo with 10 days, and Secret Harbour with 11 days.
The median rent for Perth has remained stable at $360, however the median rent for houses increased $10 per week to $380 and with Perth’s vacancy rate sitting at 1.6 per cent, we can expect to see continued upward pressure on rents in the coming months, especially once COVID moratoriums are lifted.
A closer look at the data shows four out of five Perth suburbs experienced an improved or stabilised median rent price, with Perth, Ellenbrook, Hamilton Hill, Bentley and Scarborough the top five performers.
The high demand for rentals has seen rental stock fall 10 per cent on July, with 3,205 properties for rent at the end of August and based on the high current level of demand, we expect the stock to fall further in September.
This is all great news for homeowners and investors, as vacancy rates and rental yields are early market indicators of a rising property market.
Perth Market Snapshot
Listings for sale were also down in August with only 10,627 properties for sale which is 1.2 per cent lower than July and 23.2 per cent lower than this time last year. Weekly sales in Perth for the week ending 30 August has seen 838 sales, this is a 49% increase over the same time last year.
Land sales still being a strong performer, due to the grants announced earlier this year. The top suburbs for land sales were Madora Bay, Baldivis, Maddington, Wellard and Hammond Park, all which are located in Perth’s outer suburbs.
Established house sales have continued to increase also during the month of August, although overall prices had remained stable in the Perth region, data shows 45 per cent of suburbs experienced an increase in median sale price.
Kelmscott saw the biggest increase to its median in August with a 5.4 per cent increase to $320,000, which was followed by Riverton (up 3.9 per cent), Duncraig (up 3.7 per cent), Piara Waters (up 3.6 per cent), and Carramar (up 3.4 per cent)
The suburbs that saw the biggest improvement in sales were Stirling, Shenton Park, Fremantle, Bayswater and Iluka.
Three of the top five suburbs had a median sale price under Perth’s median of $475,000 and suggests people are taking advantage of properties in Perth that are priced at the lower end of the market.
Perth’s Top End of Town
Multi-million dollar mansions are being snapped up at a surprising rate, as Perth’s premium property market stands strong in the face of a national recession.
Agents in the elite western suburbs and coastal stretches say they are seeing an influx of enquiries from expatriates desperate to escape heavily infected COVID-19 cities and return to Western Australia.
The past month has seen several significant sales, including the purchase of Alan Bond’s former mansion in Watkins Road, Dalkeith for $27.5 million – a likely record for 2020 – a property in the renowned Jutland Parade, Dalkeith for more than $10 million and 6 Riverview Place in Mosman Park for $8 million.
It comes as new data compiled by realestate.com.au shows Perth’s blue-ribbon western suburbs have retained the mantle as the city’s most expensive property belt. Peppermint Grove took out top spot on the list of 10 most expensive suburbs, with Dalkeith, Cottesloe and Nedlands also pegging spots.
What about after September?
Some people have been reluctant to enter the property market due to the belief of an upcoming financial cliff after the end of September, this is when the banking mortgage relief deferrals come to an end. Banks have provided relief for 1 in 14 mortgages across Australia, with 20% of those now resuming their mortgage payments. The major banks have recently confirmed they will be supporting customers in need beyond the end of September. This will help support the housing market and provide more time for the economy to recover.
Outlook for Perth
The Perth inner market in general is performing well as the increase is sales activity and values are showing. Home opens are seeing increased buyer activity. Property priced correctly, is selling in a very short time frame and receiving multiple offers. Auctions are seeing an increase in attendance with multiple bidders. Not all of the Perth market is expected to perform well, now more than ever doing the research on the current market conditions, supply and demand are crucial.
One of the frequent issues we are hearing from buyers, is the low levels of stock and well priced property in high demand areas being sold quickly. Getting access to more opportunities, without the competition and pressure of other buyers is a great option. As a buyers agent, we can connect you with these prospects, providing greater potential. They can turn to their close network and connections to locate off market opportunities. We can put some strategies in place to help you meet your property goals.
We can increase options for your property search and rest assured that you are in the best hands when it comes to appraisal and negotiation. Just because a property is priced at a certain value, it doesn’t always mean that’s what it’s worth. I’m constantly seeing property being sold for more then it’s worth.
If you would like to chat to our buyers agent about your property requirements and strategy, please give us a call on 0401 774 715 or email us today email@example.com
Resolve Property Solutions is an independent and qualified Buyer’s Agent specialising in Perth property. We will work hard for you to help your search, negotiate and secure your property goals at the best possible price.
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