Perth dwelling value increases 0.6 per cent in October

Perthsresidentialhousing markethas experienced growth in October, with CoreLogics Home Value Index increasing 0.6 per cent when compared to September and 0.9 per cent over the quarter.

REIWA President Damian Collins saidin late2019, REIWAbelievedthat the new year wouldsee increasedmarketactivityand despite the COVID-19 pandemic, the Western Australian property marketcertainlyhas seen this.

Sales volume

When comparingOctober2020reiwa.com data toOctober 2019,sales volume has increased 2.7 per cent. Breaking it down, houses saw a seven per cent annual increase, unitsincreased20.4 per cent and landdecreased27.1 per cent,Mr Collins said.

Thedecrease inland saleswas lessened bythe higher number of salesdue totheHomeBuildergrant,which certainly picked up the overall annual number of sales, however it is still pleasing to see houses and units performing quite well.

Sales activity

The suburb to see the biggest spike in sales activity growthin Octoberwas Yanchep with a 133 per cent increase- predominately due to the large number of land sales. Followed by East Victoria Park (100 per cent), Cloverdale (86 per cent), Hammond Park (67 per cent) andAveley(63 per cent).

Not only have stocklevelsdecreasedwith10,272 properties for sale on reiwa.com, which is 27.8 per cent less than this time last year, but the median days to sell hasalsolowered to 25 days three days quicker than September and22 days quicker thanOctober2019, Mr Collins said.

Perthrentalmarket

With Perthsresidentialrental marketcurrentlyina crisis,with avacancy rateof0.96 per cent,it seems the situation is getting worse, withOctobers rental data showingthat stock levels continue to drop, and rents have started increasing.

Median rent price

Mr Collins saidafter24monthsof a constant median rent price of $350, in just three months there has been a$25 per weekjumpto $375.

The median rent for houses increased$35 per weekover the three monthsto $395and units increased$20 per weekto $350. With a continued low vacancy rate putting upward pressure on rent, we can expect this to increase further over the coming months, Mr Collins said.

Southern Riverwas the top performing suburb by median weekly rentin Octoberwitha3.8 per cent increase to $420 per week.This was closely followed byArmadale (up 3.2 per cent to $270), Butler (up 3.2 per cent to $320), Subiaco (up 2.9 per cent to $650) and Ellenbrook (up2.9per cent to $350).

Listings for rent and leasing activity

October reiwa.com data reinforces thatwereundergoing a serious rental shortage, with listings for rent decreasing 51.5 per centandleasing activity reducing32.6 per centwhen compared with October 2019, Mr Collins said.

The median days to leasein Octoberis the quickest it has been since April 2013, taking only 18 days, with agents on the ground reporting some properties are leasing within days of a listing goingliveon reiwa.com.

/Public Release. This material comes from the originating organization/author(s)and may be of a point-in-time nature, edited for clarity, style and length. The views and opinions expressed are those of the author(s).View in full here.