WA Perth market 2019

This is unsurprising. Low demand, investors nowhere to be seen, prices still falling. However, minimal new stock and very low numbers of new listings offsets this, such that the supply/demand equation is better in many areas than it's been for a while through shear reduction in supply. I think the trend for these charts will probably hold level or edge upward for WA through the second half of this year with APRA changes & rate cuts only really flowing through in the last few months.

Things are bad but on balance the fundamentals still look stronger than 12 months ago and these are the conditions that ultimately preceed a recovery. Will the market fall much further and how far away is the recovery are the big questions.

 

Well, This chart clearly shows the investor lending going down hill once the APRA restrictions came in to place. It is good to look back at the history, but certain things like APRA restrictions and Royal commission on banks did not happen in the past. So we are in the new unknown territory. I think population growth will be the key to market recovery. I personally don't see that happening yet atleast for another three to four years.

 

Tourism game-changer to land at Perth Airport

 

Interesting Observation..

In the process of hiring at work and I have approx. 50 applications.
Last year i had over 200+ for the same role.
Also noticed approx. 20% I have looked at have stated: "recently relocated to Perth" most from NSW and VIC.

 

Very good to hear, I really wouldn't have thought there'd be that many people relocating from NSW/VIC to WA given the differential that still remains between employment rates. Are these people who are moving back to WA?

 

A few in their twenties (assume rent was too expensive perhaps)
A couple of guys in their 40's with families (perhaps sold over East and looking for a change)
As to whether they were originally from WA I couldn't say.

 

This is problem with DATA. Could I assume that last year you had the same 20% of the 200 applications? Isn’t a worst scenario having only 50 instead of 200?
The perfect reading is that since last year 150 got a job in WA and no one left the state.
Sorry for being a downer but I just can’t see the market turning this soon. Again: I hope I am completely wrong.
Cheers

 

I go through every applicant and read their resumes. Last year from memory there was only 1 applicant from Melbourne. Not one I can remember mentioned that had relocated to Perth. This time with 1/4 of the applicants I had 10 that had recently relocated or are in NSW and looking to relocate. I found that interesting, nothing more. Theoretically speaking a larger pool might be better but I have shortlisted 5 solid applicants this year. Last year I only interviewed 3.

 

When I mention worst scenario I was meaning for property market not your company.
Agree that it’s a good sign having the 20% this year though. We need good solid thriving companies to turn this around.

 

People need jobs to buy houses.. we went from 9 to 20 staff in the last 4 years and spent millions investing in training and resources. A lot of work in the pipeline but big mining companies are dragging their heels.. some projects have been in talks for years now. 5 of our staff have bought houses this year. All starts with jobs.

 

Perth market snapshot for the week ending 13 October 2019
NEW
14 October 2019


Sales activity increased 18 per cent in Perth this week, with REIWA members reporting 586 transactions compared to 502 last week.

This increase can be attributed to a 18 per cent rise in house sales, nine per cent rise in unit sales and 34 per cent rise in vacant land sales over the week.

Listings for sale
There were 13,830 properties for sale in Perth at the end of this week, which is one per cent more than last week.

A closer look at listing stock levels shows house and unit listings increased by two per cent, while listings for vacant land decreased by one per cent.

This week's total figure is on par with levels seen four weeks ago, but are 15 per cent lower than levels seen a year ago.

Perth rental market
REIWA members reported there were 6,184 properties for rent in Perth at the end of this week, which is in line with last week.

This week's rental listings figure is five per cent lower than levels seen four weeks ago and 17 per cent lower than levels seen a year ago.



Leasing activity jumped 24 per cent in Perth this week, with REIWA members reporting 1,046 properties leased.

This week's leasing activity compares two per cent lower than levels seen four weeks ago and six per cent lower than levels seen a year ago.

View our Perth Market Snapshot graph for a detailed breakdown of the past week.

 

I completely agree with that. May I just had that, they probably bought the house not because they have a job, but because they have a secure job (or at least the feeling of it).

 

WA Property Industry Stands Together Seeking Government Support|REIWA

Anyone read this

Feel the FHB stamp exemption up until 550k would really benefit

Would certainly in my case

What are the chances these proposals are acted on and how long would people expect?

 

Hmm some OK ideas but it also sounds like a classic special interest wishlist. Good that government seems to be giving the issue some serious attention though. Reducing or getting rid of the foreign buyer surchage is a no-brainer, I still can't believe this was implemented at the time it was. Making this change will be seen as a political backflip though so it may not happen.

Overall reform/reduction in stamp duty would be good to motivate the market, instead of carving out more special exemptions and discounts IMO. Given that median prices have come down about 20% in the last 5 years, FHBs can already buy a lot better under the duty-free threshold than they could a few years ago. I just don't see this as a significant barrier right now. Extending some or all of the FHOG to existing property would be better.

Huge stamp duty costs are putting a wet blanket on would-be upgraders and investors who haven't had the typical equity uplift on their existing property that would ordinarily take the sting out of stamp duty on the next purchase. Plus, it's the bottom half of the market that is really struggling and needs support to stop the erosion of household wealth and anaemic consumer spending that the crashing of this part of the market is precipitating. Increasing the stamp duty exemption threshold doesn't help this.

And the last thing the Perth market needs is incentives to build more OTP apartments. Sure it might create short term construction jobs, but it's like setting fire to your house to keep warm.

Also, Keystart is a joke. The high interest rate is the barrier (150bps higher than typical rates) not the income limits. Hard to imagine anybody looking at the interest rate and thinking it makes financial sense to jump in on a purchase in a falling market and be trapped on that interest rate for God-knows-how-many years until the Perth market turns and you gain enough equity to refinance.

 

Its pretty thin gruel isn't it?

The only stimulus that makes sense is to build a **** load of social housing while the market is down. Plenty of demand for that and does the stimulus job along the way.

 

Perth market snapshot for the week ending 20 October 2019
NEW
21 October 2019


Sales activity increased three per cent in Perth this week, with REIWA members reporting 597 transactions compared to 586 last week.

This increase can be attributed to a 20 per cent increase in unit sales and a six per cent fall in vacant land sales, despite stable house sales over the week.

This week’s figure is 26 per cent higher than the same week last year.

Listings for sale
There were 14,083 properties for sale in Perth at the end of this week, which is 1.8 per cent more than last week.

A closer look at listing stock levels shows house listings increased by 1.7 per cent, and listings for vacant land increased by two per cent.

This week's total figure is one per cent higher than levels seen four weeks ago and are 15 per cent lower than levels seen a year ago.

Perth rental market
REIWA members reported there were 6,116 properties for rent in Perth at the end of this week, which is one per cent less than last week.

This week's rental listings figure is 3.5 per cent lower than levels seen four weeks ago and are 17 per cent lower than levels seen a year ago.

Leasing activity remained steady in Perth this week, with REIWA members reporting 1,034 properties leased down 1.7 per cent from the same week last year.

View our Perth Market Snapshot graph for a detailed breakdown of the past week.

 

Yay vacancy rate still dropping about 100 a week the last few months. Love watching it come down so quick. Good signs

 

Will be cracking open the champagne when it’s under 5k (any excuse will do)

 

Which Capital Cities Are Poised To See Low Vacancy Rates?

National residential vacancy rate dipped in September, down to 2.1% from 2.2% in August, according to SQM Research.

Hobart recorded the lowest vacancy rate at 0.6%, while Sydney registered the highest at 3.2%. Canberra's rental market remained tight, with its vacancy rate falling from 1.2% to 1%.

While the past month could be considered a good month for Sydney, SQM Research managing director Louis Christopher said the city's vacancy rate is expected to rise before the year ends.

"Perth and Brisbane are likely to continue to record falls in vacancies over the short to medium term due to current low dwelling completion activity versus increased underlying demand," he said.

The table below shows the monthly and annual changes to vacancy rates in each capital city:

 

Just saw this on a recent FB post from Ch7 re: WA

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