The Perth property market update for May 2018 was released by Real Estate Information WA at the beginning of June and shows positive signs for the future of Perth’s property market.
While figures such as the median house price, sales activity and listings for rent have decreased, the vacancy rate has continued to remain stable. Here are some key points to take from REIWA’s Perth property market update for May 2018.
Key Perth property market statistics for May 2018
Throughout May, the median house price in Perth decreased slightly by 0.3% to $520,500. The number of listings for sale remained stable. However, the median rent price remained stable at $350 per week for the 14th month in a row. The leasing activity increased significantly by 18%, while the listings for rent decreased slightly by 4%. Lastly, the vacancy rate remained stable at 5.1%, which is a promising sign for Perth’s property market, considering it was as high as 7.3% just last year.
What does this mean for Perth property investors?
Vacancy rates are a good measure of how the property market is tracking in general. An increase in population growth and a decrease in average tenancy periods are examples of factors that contribute to a low vacancy rate. Population trends affect the rental market as new entrants into the state are usually the first to nab rental stock. Secondly, lower average tenancy periods drive demand for rentals and lead to increased leasing activity as tenants are moving more frequently. For example, Perth’s average tenancy period was 45 months in 2014, but by 2017 decreased by almost a whole year to 34 months.
While Perth vacancy rates are still high, it’s still considered low compared to recent years. This is a positive indicator for investors looking to purchase a Perth investment property, as a lower vacancy rate means there isn’t a great deal of choice for potential tenants. However, it’s still as important as ever to ensure your Perth investment property is as appealing as possible to renters, by ensuring your property is priced well and presenting well.
The future of the Perth property market
According to CoreLogic, Perth is the only capital city to show an improvement in annual growth conditions in the last year, as the rate of decline has slowed from 3% to 2.3%. Essentially, the Perth property market appears to be levelling out.
However, these statistics also show that recent trends are going in a new direction. For example, regional areas are currently outperforming capitals cities and units are outperforming houses – a trend that had not previously occurred. Perth property market experts predict that units are increasing in popularity due to our ageing population and an increasing number of people deciding to live alone.
Expert advice from Rentwest Solutions
It can be difficult and overwhelming to keep up-to-date with the Perth property market. Our team of expert property managers at Rentwest Solutions are here to help you make sense of the highs and lows of the Perth property market and how to use these to your best advantage. After all, Rentwest Solutions has consistently maintained a lower vacancy rate than the overall average by three to four percent, and our team is dedicated to working with property owners to make their Perth investment property as appealing as possible to help keep vacancy rates at a minimum. For more information about our property management solutions, contact us on 08 9314 9888 or email us at [email protected].