WA Perth market 2019

For what?
Individual?
Companies/trusts?
Resident/non-resident?
Development?

Blacky

 

Property? Mark Pozzi.

 

Individual resident, but someone property inclined. Thinking long term

 

On me. I’ve got a few I can reccomend.

 

Number of available rentals rising again.

There will be no broad based rent increases at these stock levels.

Perth Median House Prices, Sales Volume and Rental Market Data - REIWA

 

This is seasonal. Perth's rental market trend looks like this, every year regardless of the annualised market moving up or down. The only difference is how steep each rise/fall is:

• Jan to mid-Feb: fall
• late-Feb to June: rise
• July to Nov: fall (this is the key time where listings fall the most. Note however in 2014 this period was almost flat)
• Dec: in 2013, 2014, and 2015 there was a rise in Dec. this has not appeared since.
• Late Dec to early Jan: there is a dip over christmas due to people not listing during the holiday, then a spike in the first weeks of jan as those people play catch-up

Granted the current rise is a little faster than last year, but in the broader context it is still within reason. I am expecting to see low 6,000's by year-end which puts listings back where they were in 2014.

By realestate.com.au data, here's number of listings this week of each year:

• 2017: 12,958
• 2018: 10,126
• 2019: 8,143

By comparison to REIWA:

• 2017: 10,732
• 2018: 9,020
• 2019: 7,277

 

Good post, thanks.

What do you think is the magic number to create inflation?

My guess is sub-5000.

 

Inflation in oversupplied areas will take a long time and won't depends on a headline figure.

In other areas rents are already incresing. I have resigned one tenant at a higher rent and have an application for a different property at $20 per week higher than I could have got 12 months ago.

 

Its just a shame there isn't reliable data to sort one from the other.

 

II tend to agree, around that number i would expect to see the following:

1. prices will be pushed high enough that "paying someone else's mortgage" will be the reality. it will simply be cheaper to buy
2. There will be few decent places to rent, so if people want something decent they will be better off buying

Saying that, at 7,000 listings now we are under 3% vacancy already. I suspect even 6,000 will have a notable impact on the market

 

In which case the number of people entering rentals would need to exceed the number of people leaving them to buy. Otherwise, you would expect the vacancy rate to rise again.

Good to remember too that younger people will pay the higher rents because they are saving a deposit or would just rather live in better areas in houses and apartments they can’t afford to/ don’t want to buy.

 

Rentals in middle/inner ring are definitely moving. I've heard from multiple friends that are looking that every home open is packed, and every offer is above asking price by $10/$20. Sometimes they wont even get a call back. Specific property choice is now just as imperative as location. Outer ring suburbs that are oversupplied with still take a while to be absorbed.

 

What kind of stock? Or is it across the board?

 

3x1's and above in decent suburbs. Im talking mainly north of the river here. Family homes near schools etc nd some sort of yard

 

Rental data is terrible! For my area it's based on median asking price... but real estate agents routinely overprice properties in my area. Also, it's been transitioning from 3x1 to a lot more 1 bedder and 2 bedder apartments, which rent for less. So the median asking price goes down because of the influx of cheaper properties but if you are looking for a 4 bedder you might find that actual rent has gone up.

Speaking to leasing agents would give you a better picture than looking at meaningless numbers

 

I say this half jokingly, but they've had 5 years to do that. I have a lot of friends in Perth sitting on their deposits "waiting for the right time to buy". Its amazing how fast sentiment can shift in a market

 

I thought people were not touching the 1 bath stuff (eg 3x1 and 4x1)?

 

Back from the wilderness.. turbulent 2 months with a death in the family and a cancer diagnosis... anyway, all is well, thoughts on below?

https://www.perthnow.com.au/lifesty...yoQ_bp20tv2kFkXN6J2atVXr6xGJ-j5weJMZ6IouBrhSk

 

I like that whole stretch from Mt Hawthorn through Joondanna to the south of Tuart Hill.
Settled. Close to the city. Great streetscape (trees and shrubbery) well looked after houses and gardens and plenty of amenity and transport links.
But that’s just me J

 

Hi All,
I am a first home buyer looking to build a new house on a vacant land. Any good builder recommendations who is reliable, I am currently talking to Summit Homes. Its a small block <240m2 in Melville