Perth Residential Market Insights – March 2021
Perth Sales Market
Seven consecutive months of growth for the Perth market
CoreLogic’s Home Value Index for Perth grew again during March, up 1.8% and increasing 5.0% over the past three months. The Perth market has also seen a rise in the number of sales transactions during the first quarter of 2021, up 42.2% (3,200 properties sold) compared to the same period in 2020.
March towards increasing sales listings
We are seeing fluctuations in sales stock which have recently dropped again after several consecutive weeks of slight increases. Overall, stock for sale remains lower than the end of 2020 and it is still very much a seller’s market. Our team on the ground are seeing some investment property owners who are looking to take advantage of the favourable market conditions and the end of the rental moratorium to place these properties on the market, something that will only exacerbate the rental crisis.
Perth Rental Market
Emergency rental moratorium comes to an end
WA’s emergency residential tenancy laws officially ended on March 28, marking the end of a tough period for landlords who have not been able to increase their rents in line with the market, but may now have the opportunity to realise a stronger return after weathering the softer rental market in recent years. It’s expected the end of the moratorium will also encourage more investors to enter the market, which may help to ease the rental shortage we are currently experiencing.
Perth rents showing strong growth
The Perth rental market continues to strengthen, increasing 5.9% across the quarter and 2.0% in March alone. These strengthening rental prices are positive news for existing property owners, who have held properties through Perth’s previous period of rental price contraction (rents remain 16.0% below the previous peak achieved in 2013). Overall, gross rental yields in Perth remain strong at 4.4%, however, our buyer’s agents are often buying properties with yields over 5%, highlighting the opportunity on offer in the market.