Perths property market has seenanothergrowth to the CoreLogic Hedonic Home Value Index, which is up 0.5 per cent for the month and 0.9per centfor the quarter, despite the recent economic changes we have seen due to thecoronaviurs(COVID-19) outbreak.
REIWA President Damian Collins said it was clearthat we were heading towards a recovery right up until the last week of themonth.
March showed the Perth market continued its recovery with stock levels downone per cent than last month and 25 per cent lower than this time last year,Mr Collins said.
There were 12,294 properties listed for sale on reiwa.com, however thisnumber will continue to fall as we navigate through this uncertain time.
In the last week we have seen a significant drop in the number of salestransactions, with March having a total of only 2,205 sales for the month,which is down 23 per cent and is down 24 per cent from an annual perspective.
Despite the positives we have seen this month, it is clear the fullimpacts of coronavirus have not yet hit the property market.
Unless there is something done to encourage people to buy and sell, thesales volume will continue to decline, which is why we are calling on the Stateand Federal Government to consider introducing a 75 per cent stamp dutyreduction for six months on all properties, Mr Collins said.
We are hopeful that the government packages announced will keep theeconomy going and property prices will hold, but we will watch and continueurging the government to offer stamp duty relief if transaction volumescontinue to fall further.
Perth rental market
Perths rental market has remained stable thismonth despite the coronavirus pandemic, which demonstrates just how important housingis to our community.
REIWA President Damian Collins said Perths medianrent remained stable at $360 per week in March after last month experienced thefirst increase.
Listings for rent were down seven per cent inMarch with 4,171 listings for rent on reiwa.com, however we did see an increasein leasing activity for the month which was up one percent and six per centfrom an annual perspective, Mr Collins said.
Ban on rental evictions
With the Federal Governments announcement on amoratorium on rental evictions of residential and commercial tenants infinancial distress due to coronavirus for the next six months, we can expect activityto lower.
While we understand this initiative and supportthe governments decision to implement it, it is important that all tenants understandthat they must continue to pay rent where their businesses or jobs have notbeen significantly affected by coronavirus. We also await further announcementsby the government on rent assistance for those property owners.