Perth property market recovers following September slump

By the resi financial blog team, 03 December 2013

Perth property market recovers

Western Australia's real estate market has strengthened over the last few months, which could present a great opportunity for investment in the near future.

The Real Estate Institute of Western Australia (REIWA) has released data, which highlighted an increase in sales turnovers during October and November.

For the three months to November, Perth's median house price rose to sit between $530,000 - $535,000, increasing on the previous high of $525,000 during the June quarter earlier this year.

REIWA President David Airey said that one of the main reasons for this rise in sales was simply the natural recovery of the market following a big drop in turnovers during the September quarter, with things now beginning to return to normal levels.

"The quarterly median for the three months to November was up by almost 4 per cent and due mainly to the composition of sales during this period after strong first home buyer activity pulled the median house price down to $510,000 in the September quarter," said Mr Airey in a December 2 statement.

The rental market in Perth has also seen growth, with the favour turning towards tenants during recent times. The number of rentals available for rent has been on the rise, while simultaneously the median rents in the city have dropped.

For example, the median rent in the metropolitan area has dropped by over 2 per cent during the last three months - reaching $460 across the board. Therefore, the typical rent for houses is around $470, while units and apartments are charging around $450 per week.

Rental listings rose by 2 per cent last week alone (November 26), with 4,419 properties put onto the market. Furthermore, vacancy rates were relatively high, sitting at an average of 3.2 per cent - providing anyone unable to purchase their own property the opportunity for accommodation in the state.

Categories: Home Loans, Property Investment