Rents remain on the decline while property sales are stable.
Perth’s median house price remained at $547,000(three months to May), but the rents in metropolitan areas are dropping, as confirmed by the Real Estate Institute of Western Australia (REIWA). REIWA is a non-profit organization that operates to give Western Australians up-to-date market advice on real estate.
Compared to same period last year, revenues for home sales were down by 16%, but there was a seasonal rise of 13% to 2,067 in May.
Western suburbs have the highest reported revenue with up to 60% in April. It is followed by Melville with up to 52% and up to 40% each for Cockburn, South Perth and Victoria Park.
During the same period last year, the western suburbs and City of Melville showed better sales numbers.
Canning Vale, Willetton, Baldvis, Ellenbrook and Butler were on the list of best-selling suburbs.
David Airey, president of REIWA, reported that at present, the list of properties on the market is 14,293 which is above average compared to May with a total of 14,363.
Airey states that “There was a modest 1% increase in listings in May, but there is now 35% more properties on the market compared with May last year.”
It is expected that as rental stock rises, the vacancy rate also increases. April has a 4.5% vacancy rate and currently, 7,616 properties are available for rental and are still looking for occupants.
Airey added, “There was a 7% jump in rental listings during May, adding to 44 % more rental properties to the market than the same time in 2014.”
Perth’s southwest region, including Cockburn, Rockingham, and Kwinana, experienced a major record rise with rental listings at 11%.
Due to struggle in the rental market, Perth’s average rent decreased to $425 per week. The rental price for a villa or apartment is $400 (a decrease of $20). The rental price for a house is $440 (a decrease of $10).
According to Airey, Perth’s average rent, from its highest in June 2013 amounting to $475 per week, is now $50 (a decrease of 10%).
Between April and May, the city of Belmont had its lowest drop in average rent from $450 to $425 per week.
