As the clouds of winter along with COVID bad news hang over the city, suburbs, state wide with Australian lockdowns. The prices of property continue to grow despite any bad weather or bad news. Perth Western Australia has continued to recover from a 5 year cold to luke warm market from 2015 – 2020.
This last property cycle has been a special one with prices taking a massive dive in the middle of the pandemic. Government subsidies, grants, incentives, bank lending promotions, all time interest rates low, just kept giving to push all the buttons of the buyers for some confidence. Then as the bargain basement of real estate was exposed to the market place buyers then like a breaking of the walls on a dam with buyers holding back years they flooded into the streets to buy property.
Simultaneously the WA government put up grants for Land & House incentives which was like throwing petrol on the fire with buyers snapping up lots of land & builders found themselves in boom town. So its been a crazy rollercoaster ride in real estate for WA but one of making things happen as WA is a go ahead state looking after itself like a stand alone state for a century.
SUPPLY & DEMAND
Simple market place conditions are effected by supply & demand. Change in a particular segment of the market place for property, product, service, any item can be cold to hot depending on the the balance of buyer demand to sellers supply.
Western Australia on a normal week would transact around 500 – 600 properties which is around 30,000 per year. Online each listing would have 300 – 600 views with around 30 – 50 buyers to home opens with a 60 – 75 days selling period. The first half of 2021 Jan – June these figures have increased doubling buyer activity which halved the time to sell. So its been a RED HOT market like cooking pop corn with deals popping off everywhere around the state.
SIX YEAR HIGH
Perth house and unit rents have now hit a six-year high following four consecutive quarters of rising rents. Tenants and landlords will find rental conditions are changing as the market undertakes a swift recovery. House rents jump $20 over the June quarter to $450 a week, surging by $80 over the past year. This 21.6 per cent annual increase is the fastest rate of rent growth in roughly 14 years. House rents remain $40 lower than the peak mid-2013, at the same rate of growth rents could surpass this by the end of the calendar year. Unit rents edged $10 higher over the June quarter to $380 a week. Tenants are forking out $60 more a week compared to last year, this 18.8 per cent annual rise is the steepest in 13 years. Unit rents remain $70 lower than the mid-2013 peak.
This is the first quarter to capture the ending of the state government rental moratorium on evictions and rental hikes. Tenants previously protected from rising rents are particularly vulnerable given Perth’s rental market has experienced the biggest upward rent change in more than a decade. Demand for rentals has surged over the past year as more Australians decide to relocate west and expats return. The flow of residents away from Perth has previously been a drag on the demand for housing; but with a positive net flow of interstate residents, Perth’s vacancy rate remains firmly at a multi-year low. This gives tenants less choice and landlords greater ground to raise rents. Investors are starting to react to strong property price growth, low interest rates, rising rents and the perceived value that Perth offers compared to the east coast.
Perth Median Rent June 2021
Median House Rent $450 + 4.7%
Median Unit Rent $380 + 2.7%
Regional Western Australia is rising to a 5 yr high from 5.6% in South West Albany to 82.5% North West Pilbara, prices are up around the state.
MORE SOON WITH PERTH REAL
Mitchell Residential : mres@iinet.net.au
Buy or Rent
Prices rising good for owners
