This is an article on Linkedin by Rod Davidson from LMW Advisory which I found interesting. "There has been a lot of negative press about the oversupply of properties still affecting the market in Perth. However we encourage buyers and sellers in this market to look at exactly where that oversupply is coming from, as you may see a slightly brighter picture than is widely publicised. REIWA's weekly snapshot shows that houses make up for a total of 74% of dwellings available on the market (this excludes land) resulting in the remaining 26% being units. Units themselves however only make up approximately 18% of the total housing sales. This shows there are approximately 45% more units for sale than there would be in an equalised market. Vacant land follows the same trend of oversupply as units, once we take these two areas out of the market the remaining established housing market is at equilibrium and is in fact under supplied in many suburbs of Perth. We are also hearing this on the ground from the multiple agents we deal with daily. This is further exacerbated within the rental market with total supply of 10,594 properties for rent, of which 4,166 being made up by units, or 39% of the total rental market. This shows that there are twice as many units for rent compared to the average supply in relation to houses. This trend aligns with what we are seeing on the ground, where suburbs well located, close to Perth have a shortage of house rental stock and the oversupply is predominantly seen either amongst units or in the out skirting suburbs and newly developed areas. There has been a continued decline in properties for rent from a high of 11,200 at the start of last quarter to now 10,594 in late 2016 - a total drop of 5.5%. We consider this trend is encouraging as it’s the first time in close to two years we have seen a decline. Properties rented last week were 1,166, up from 861, just four weeks ago and up from 873 the same week last year. The total listings dropped to 13,900 about 4 weeks ago but have increased with the spring selling season and it is important to note sales over the last month have increased by 3% and are above for the same time last year. We consider this shows that the market is continuing to trend into recovery. If this continues and we believe it will, we will look back and say that is the bottom of the market, only time will tell. If you would like advice on where and what to buy, I welcome your enquiry 0414 906 810 - [email protected] "