The Perth property market is likely to rebound, according to the latest reiwa.com data.
The capital’s rental market continues to gain momentum, with 82% of its suburbs recording either stable or increased median rent prices.
“While Perth’s overall median rent price remains at $350, we are seeing an increasing number of suburbs record upward movement in prices, which is a welcome development for Perth landlords and suggests it’s only a matter of time before Perth’s overall median rent starts to climb,” Real Estate Institute of Western Australia (REIWA) President Damian Collins said.
Of those 10 suburbs, North Perth, East Perth, and Perth had the most notable improvement in price, with their medians rising by $20, $20, and $18, respectively.
Perth’s vacancy rate is currently the lowest it has been in six years at 2.3%. Dropping inventory levels and increased tenant demand in the rental market are favouring landlords. “[The results] show no signs of abating any time soon, and we’re confident that it’s simply a matter of ‘when’ – not ‘if’ – Perth’s overall median rent price will increase this year,” Collins said.
Perth dwelling values, meanwhile, declined 0.4% over the month, but 45% of its suburbs recorded increased median house price movement.
“While dwelling values declined again in March, the rate of decline has slowed to the lowest level recorded since June 2018, which is a positive indication that prices in Perth may be approaching the bottom,” Collins said.
REIWA’s data showed that there were numerous suburbs that bucked the downward trend in terms of the median house price. Thirty percent of the statistically significant suburbs experienced an increase in price, while 15% remained stable.
Mullaloo, Wannanup, Lesmurdie, Alkimos, Karrinyup, Yanchep, Rivervale, Mount Pleasant, The Vines, and Warnbro were the 10 best performing suburbs for median house price growth in March.
“Although the Perth residential sales market remains subdued, the data for March shows some signs that price values may be starting to strengthen in some areas after a prolonged period of declines,” Collins said.