Perth’s property market is bouncing back as vacancy rates continue to fall and house prices on the rise.
After taking a pounding from the effects of COVID-19, Perth’s market has seen an upturn in fortunes with properties average time on the market almost halved from 55 days down to 28.
The city’s rental market is also on the up with vacancy rates now sitting at 0.95% – close to the 40 year low of 0.8% reached back in 2007.
Real Estate Institute of Western Australia (REIWA) President, Damian Collins, said that increasing investor confidence was the next step needed to be taken in the city’s property rebound.
“In 2007 when the vacancy rate hit below one per cent, investor lending activity in the peak six-month period was $5.8 billion, however despite seeing the same investment opportunities, investor lending finance in the six months to September 2020 is 77 per cent lower than this,” he said.
“REIWA welcomes indications from the WA Government that they will not extend the emergency tenancy laws,” said Mr Collins.
It’s important we get investors back into the market, otherwise there will be a significant increase in the demand for public housing.Damian Collins
Figures show that 7,786 properties were listed for rent during October – 53% less than 2019, with the average rent increasing by $25 to $375 on the year before.
Mr Collins explained that low levels of stock is behind the rising rent, but it is still some way from the $450+ per week experienced during the 2013 housing boom.
“Despite the increase in rents and the expectation that it will continue due to the limited stock available, it’s important to remember that Perth is still the cheapest capital city to rent in across Australia,” he said.