As market conditions continue to strengthen across Perth’s residential property market, our experts have analysed some of the top trends emerging in August 2021.
Trend 1 – Wet weather fails to dampen property demand during winter
Supply pressures continue to drive hotter conditions across Perth’s residential property market, with 233 suburbs recording growth across the winter months according to REIWA, despite typically being considered a quieter period. As a result of competitive buying conditions, the median days to sell held low at 18 days for the month of August – 28 days faster than the year prior. There are few signs of these supply pressures easing in the short term, with sales listings down over 21% on a year-to-year basis.
Trend 2 – Smart and speedy offers key for emerging buyers
With conditions remaining highly competitive, emerging buyers need to think about how to cut through when negotiating on property. In many cases, we are seeing properties go under offer immediately after, or even before, the first home open, with multiple competing offers from buyers. Our buyer’s agents are helping purchasers navigate this market with competitive terms, such as flexible settlement dates and seller lease-back options, as well as providing a consistent ear to the ground to ensure our clients are well-placed when new properties come on stream. You can read more on this topic in this month’s blog on standing out in a competitive market.
Trend 3 – Investor activity picking up
While home buyers remain the predominant driver of Perth’s property market upswing, the trend of increasing investor participation has continued from previous months. This segment now represents 20% of market activity as more investors look to capitalise on the growth opportunities on offer from tight stock levels and improving economic activity.
Trend 4 – Rental listings below 3000 for 12th consecutive month
Activity across Perth’s residential rental market remains strong, with low vacancy rates and high rental demand resulting in positive leasing results for many property owners. Listings for rent were down over 23% annually in August, holding below 3000 for the 12th consecutive month. These conditions present a great opportunity for current investors in the market to benefit from stronger yields. However, the spread of rental stock is not even across the market, so local demand and supply factors need to be taken into account when adjusting individual rental strategies. To find out whether you’ve taken the right steps to support your property’s growth, complete our rental performance check for feedback from our expert team.