Much has been written about Perth’s rental crisis, which has seen the city’s vacancy rate fall
back to a record low of 0.3% in January, following a small seasonal rise in December, according to Domain.
But it’s not just tenants who are struggling to find a place to call home; homebuyers are too, with SQM Research reporting that new listing numbers fell 13.3% to 4,100 over the month in January, which was 19.1% lower than the same period last year.
With fewer new homes hitting the market, the total number of properties advertised for sale in January also plummeted, dropping 6.1% over the month to 19,025 to be down 9.4% year-on-year.
As the graph below shows, that means listing volumes are at the lowest level in nearly 13 years.
Competition is growing
At the same time, demand is growing for properties in Perth, thanks to the city’s strong economy, low unemployment, steady population growth and affordable housing.
With fewer options on the market, buyers are having to compete harder for those that are advertised for sale. This, in turn, is starting to tilt the balance of market power back in favour of sellers and putting upwards pressure on prices.
You don’t have to take our word for it, either. For the week ending 21 February, SQM reported that the median asking price for:
- Houses rose 0.5% over the month to be up 2.8% on the year
- Units jumped 2.1% over the month to be up 8.7% on the year
How a buyer’s agent can help
That’s not to say there aren’t things buyers can do to regain the upper hand, the most important of which is working with an expert buyer’s agent like Resolve Property Solutions.
That’s because buyer’s agents don’t just use their insider knowledge to find you quality investment opportunities listed on the market; they also use their relationships with real estate agents to give you access to ‘pre-market’ and ‘off-market’ opportunities.
If you can view properties before other buyers see them, you can make an offer before anyone else does, limiting competition as you then negotiate the price and terms needed to secure the property.
Your buyer’s agent can be an invaluable help here too, using their skills to give you an edge at the negotiating table so you don’t pay more than the property is worth.
Looking to buy a property in Perth? As an expert Perth buyer’s agent, Resolve Property Solutions can help. To discuss your options, book a free strategy call with Peter Gavalas.
