vicpark Some Blue Sky Ahead for Perth’s Property Market in 2018
It appears that the grey clouds hanging over much of the Perth property market during the last two years are beginning to lift and clear, which is good news for Landlords and Property Owners alike. In fact, after the stabilizing market conditions in 2017, where declining rents and median selling prices bottomed out and steadied, REIWA is predicting that real estate across the Perth metro area will experience a gradual improvement in 2018 with some potential for blue skies ahead. However, even with the forecast “moderate and steady improvements” REIWA president, Hayden Groves, warns against “expectations of rapid growth in rents or prices” during this period. *
Positive Indicators for Perth’s Property Market…
Below are a range of key indicators from the current market:
- House Prices: December 2017’s median house price for Perth held steady at $525,000. And the biggest improvements in median house prices in December were in Perth City ($905,000, up by 8.4%) with South Perth/Victoria Park (up 5.1% to $788,000). **
- Listings For Sale: The total number of properties listed for sale as at 18/01/2018 was 13,465 which is 8% lower than the same time last year.
- Median Rents: The median rent for Perth has remained stable at $350 per week for the December 2017 quarter.
- Total Rental Properties Available: 9075 properties were available for rent as at 18/01/2018 in the metropolitan area compared with this time last year when there were 10,670 properties available. ***
- Vacancy Rates: These were stable at 5.5% for the December quarter down from a high of 6.9% in 2017.
- Leasing Activity: This area performed strongly with solid leasing activity levels of approximately 1,180 rentals leased each week. With continued trends in this direction, the all-important balance between property supply and tenant demand for rentals is predicted to improve in 2018.
So what can we learn from these current market conditions?
As we move into 2018 with the market gradually improving, it’s important to maintain a long term vision for your property portfolio and achievable expectations with your real estate aspirations. With this in mind we recommend the following:
- Maintaining realistic pricing ranges for any properties you wish to sell to avoid long periods of time on the market.
- Holding steady with rental asking prices and securing long term leases with quality tenants.
- Consider making any property purchases, either for investment or residential purposes, sooner rather than later to take advantage of the current market price levels.
- Maximizing your values for existing properties by maintaining a solid maintenance and repair schedule.
As always, if you have any questions or require further information in regards to your property dream and goals, please feel free to contact us on 9361 4666 at our office. We would love to hear from you.
Regards,
Dean Nicolo
Sources:
*https://reiwa.com.au/about-us/news/2018-presents-good-opportunities-for-buyers-and-investors/
** https://reiwa.com.au/about-us/news/perth-median-house-price-stable-in-december/
*** https://reiwa.com.au/about-us/news/perth-market-snapshot-for-the-week-ending-23-january/
