Perth Residential Market Insights – May 2021
Perth Sales Market
Median price hits new high
The Perth residential market continues to strengthen and the median price for the metropolitan area has broken through the $500,000 barrier for the first time since December 2018. Data from CoreLogic shoes the market has grown 8.5% this year and we expect these gains to continue.
Investor activity heightened
UDIA’s latest Urban Intelligence Report for WA highlighted a growing level of investor activity within the WA market. ABS lending indicators data reveals a 31.6% monthly increase and an 86.5% annual increase in the number of new investors loan commitments within WA. While investor activity remains comparatively low as a proportion of overall loan commitments, we are beginning to see the return of this segment of the market as the prospects of improving rents and strong growth conditions continue to draw the attention of both local and interstate buyers.
Perth Rental Market
Demand remains strong
Despite seeing a 4.22% increase over the last four weeks, the quantity of rental listings has remained below 3,000 for nine consecutive months. Our property management team are continuing to experience strong competition on the ground, however, it is important to ensure you price your rental property accordingly with local demand and supply indicators.
Tenant expectations increasing along with rents
Given the recent increase in rental stock, it is becoming increasingly important to present your rental property well, ensuring it is properly maintained and aligned with local market expectations. Some prospective tenants aren’t willing to pay higher rental prices if they can see things which require repair, or the property is starting to look tired and run down. Some will even specify repairs they want done as a condition of the lease, particularly in areas where there are a larger number of rentals available. Property owners should consider the needs and preferences of their target tenant when choosing a starting marketing price for their rental campaign.