Perth Residential Market Insights – April 2021
Perth Sales Market
Market recovery continues
The Perth residential market continues its recovery, with housing values continuing to demonstrate a solid upwards trajectory. This recovery is highlighted by Perth’s median house price hitting $508,000 last month, the first time it has been this high since December 2018.
Units outselling houses
After several years of sluggish activity in the unit market, sales have rebounded in 2021, with 58 per cent more unit sales in the three months to March 2021 than the same period in 2020. Growth of house sales has also increased 35 per cent during the same timeframe. Days on market for units has also fallen, taking 25 fewer days to sell during March 2021compared with the same period a year prior.
Investors becoming more active
There are signs of increasing investor activity in the Perth market, with the ABS reporting $462m in investor finance commitments in WA for the March 2021 quarter, almost double the same time last year. The Perth market remains more affordable than eastern states counterparts. Rental yields in Perth also remain higher, sitting at 4.4% compared to 2.7% in Sydney and 2.9% in Melbourne. This gives investors in Perth the opportunity to benefit from both growth and yield.
Perth Rental Market
Demand remains strong
Demand for rentals continues to outweigh supply, with the quantity of rental listings remaining below 3,000 since September 2020. Leasing activity has slowed slightly, although the vacancy rate remains below 1%.
Tenant expectations increasing along with rents
As expected, the median rental price across the Perth market has risen since the end of the COVID-19 Emergency Rental Moratorium. Our property management team note that this increase in asking rents is prompting higher expectations with regards to property presentation and maintenance from tenants. We continue to work with clients to help present their properties in the best possible light, ensuring they adjust their rental strategies in line with market and expectations. Buyers entering the Perth market should consider tenant market expectations and an assessment of required property maintenance and improvements into their property budgeting and research process.