As revised CoreLogic figures highlight significant movement for Perth’s residential property market, our experts analyse some of the biggest trends that impacted the western capital in September 2021.
Trend 1 – Revised CoreLogic figures reveal significant growth for Perth property
Following a pause in reporting in August due to a divergence in its hedonic index data, CoreLogic reported revised growth figures for Perth’s residential property sector in September, revealing annual price growth of 18.1% for the Perth market (8.4% higher than previous figures). This comes as REIWA continue to reveal strong evidence of market improvements, with prices increasing across 71 suburbs in September, despite the slight increase in stock levels typical of spring selling season. These conditions continue to provide great opportunities for home upgraders, as well as investors looking to leverage equity to re-enter the market and expand their portfolio.
Trend 2 – Strong demand and tight supply driving buyer competition
Supply pressures remained persistent across the Perth market in September, with a weekly average of only 8,439 properties listed for sale across the month according to REIWA (down 20.55% compared to the year prior). At the same time, demand for property has shown little sign of easing, with REA Group reporting a 23% increase in average online views per property across August 2021 when compared with the same period the year prior. Combined, these conditions are leading to high levels of competition between buyers. Our buyer’s agents have been working closely with clients to ensure they’re positioned strongly during property negotiations, as well as working to source off-market opportunities where possible to broaden client investment options.
Trend 3 – Perth offers second highest rental yield across Australia
Perth’s median rental price remained stable in September, holding at $430 per week across the month (REIWA). While growth in housing values is starting to move ahead of growth in rents, Perth continues to outperform other capital cities for gross rental yields, with the second highest yield of all States and territories at 4.3% in September (CoreLogic). This is great news for existing owners, as well as those looking to re-enter the market over the coming months while yields remain competitive.
Trend 4 – Tenant expectations shifting
While demand for rental properties has stabilised, on-the-ground feedback has indicated a shift in tenant expectation along with higher asking rents in the current market. Owners who seek proactive advice on their property presentation and local market trends will be better placed to attract stronger competition, increasing their chances of securing quality tenants. For more insights into how you can better position an existing property in the current market, request an obligation-free phone consultation with our property management specialists.