Perth Sales Market
Perth market stable but set to grow
July marked the twelfth consecutive month of price growth for Perth’s residential market. CoreLogic’s Home Value Index increased 0.3% across the month, with buyer demand remaining stable despite winter typically being considered a low-demand period. An average of 845 property transactions were recorded per week in July, setting the market in good stead as we head towards the higher demand spring period.
Tight supply levels to continue driving market growth
Our team on the ground are seeing increased buyer competition in investment-grade suburbs as quality property stock remains tight, and this is backed by the latest data from REIWA. In the last week of July there were 8,472 properties listed for sale, 19% below the same period last year. REIWA considers 12,000 – 14,000 listings to represent a balanced market and the current levels remain well below this mark.
Perth Rental Market
Perth records second highest rental growth
Perth recorded the second highest annual growth in rent values in July behind Darwin (CoreLogic). Rents in Perth have increased +16.6% for houses and +14.6% for units in the year to July 2021 as demand pressures continue to place upwards pressure on rental prices.
Rental stock holding at low levels
Despite a slight increase in the vacancy rate to 1.2% in June 2021 (the highest rate Perth has witnessed since August 2020), the rental vacancy rate remains well below the range of 2-3% that REIWA quote as the benchmark for a balanced market. Rental listings are holding low at around -26.09% below levels seen this time last year, and rental listings have hovered below 3,000 for the 11th consecutive month.