Perth Residential Market Insights – October 2020
Perth Sales Market
CoreLogic reports 0.6% growth
Data from CoreLogic shows the continued strengthening of the Perth market with a 0.6% increase in their index growth for October. Our buyer’s agents and team on the ground have also been witnessing this positive movement within the market and have noted that the change is even greater in core areas that are more tightly held, with investment-grade properties commonly going under offer in as little as one to two weeks.
Record week of sales activity
Stock for sale continues to fall, down 28.3% at the end of October compared to the same period in 2019. At the same time, Perth experienced its highest week of dwelling sales since 2014 in the week ending 25 October. Our buyer’s agents continue to witness increased competition for the limited properties that are on the market, especially within tightly held areas, with these conditions continuing to have a positive impact on prices and market growth.
Perth Rental Market
Median rent experiences growth
REIWA has reported an increase in the median rent for houses in Perth, up to $390 during September. Rental stock remains tight, with the vacancy rate sitting at 0.96% and only 2,874 properties for rent, -52.8% lower than the same period 12-months prior. Data from realestate.com.au highlights rental property searches having increased 17% year-on-year for September. With WA’s hard border being relaxed and with an expected influx of people entering the state, the rental market is likely to continue to tighten, and median rent looks set to trend positively.
Houses lead rental growth
The trend of houses proving more resilient than units extends into the rental market with CoreLogic reporting that during the period from March 31 to October 31, house rents in Perth have risen 4.9%, leading unit rents which increased 2.5%. This sentiment is backed up by our property management team who continue to witness high competition in tightly held suburbs and a withdrawal of renters from inner-city apartments.