Perth offers above average yields despite being growth leader
The big story for property investors in Perth is that despite very strong growth in values, the city’s rental yield remains above the average for all capital cities.
Perth currently has the strongest housing market of all the capital cities, according to RP Data’s Australian Housing Market Update for September.
House values are up 9.7 percent over the past year, while the growth in unit values was lower but still significant at 6.1 percent.
Accompanying the lift in values has been a monumental jump in the number of properties sold. In the 3 months to June 2013, there were 23.2 more sales than over the same period last year.
Rents in Perth have also increased, with house rents growing by 5.6 percent over the past year and unit rents growing by 6.5 percent.
However, with many renters taking advantage of cheap credit to buy their first home, the pressure on the rental market has now eased and the vacancy rate has increased.
Properties in Perth are selling much quicker than they were last year with the average time on the market falling from 64 days to just 34 days.
The big story for investors is that despite very strong growth in values, the rental yield remains above the average for all capital cities. The average rental yield for a house is 4.4 percent and 5.0 percent for a unit.