prowest 
Market Update July 2020
As we reached the end of the month, it’s a nice time to reflect on the past few months. We’ve reached a new financial year and the property market is slowly but surely in a recovery position from the last few “Covid-19” months.
We’ve seen a large number of buyers coming into the market ready to buy. Land was the big seller in July, due to the State and Federal Government s generous incentive schemes. However, this is not expected to last long as the schemes conditions require the contract for building to be entered into by 30/12/2020. Builders will find themselves under pressure to complete documentation by that date and consequently there will be a reduction in the number of new contracts that can be added to the system.
However it was not only house and land packages that were in demand, but also established homes in the area. Currently there are only 10,751 properties listed on the market, compared with 14, 814 this time last year. Under normal circumstances that would make it a sellers’ market but with Covid the buyers are skittish. The outcome. Lots of buyer activity for well-presented properties but often talking longer to negotiate with initial offers sometimes being well below asking.. However the final selling prices are holding up very well within our areas.
Sales activity increased 16% in Perth this week, with an 8% in house sales and a 55% rise in vacant land sales over the week, with reiwa.com data showing volumes were up 68% compared to April across both dwellings and land sales.
There has been lots of buyer activity for well-presented properties but often talking longer to negotiate with initial offers sometimes being well below asking.. However the final selling prices are holding up very well in our areas.
Median house prices in Perth remained stable in July at $475,000.
“On an annual basis, prices lowered slightly, with the median house price only 2.3 per cent lower than it was in July 2019, Although Perth’s overall median house price remained stable in July, reiwa.com data shows one in three suburbs recorded an increase” Mr Collins, REIWA president, said.
Rental Sector
Within our leasing sector, we have lots of activity. The last 5 months have been the busiest time in property management we’ve seen in a long time, with up to 30 prospective tenants at numerous home opens. We are often receiving multiple applications on each property.
Across Perth there were 3,555 properties listed for rent which is a decrease of 4% from the figures reported last week by REIWA members.
Currently, Our vacancy rate is very low at just 0.8% meaning that 99.25 or our properties are tenanted. Our average time vacant is often 10 -14 days under the Perth average. This means that our owners are receiving up to two weeks extra income compared to the average in Perth.
Perth’s median rent prices have been stable the last quarter, remaining at just $350.00 per week. Breaking this down, most houses were receiving around $370.00 per week and units achieving $340.00 per week which is actually an increase of $5.00 per week compared to amounts recorded back in June 2020.
The top performing suburbs to see an increase in leasing activity this month include Leeming, Victoria Park and St James.
If you’ve been thinking of buying, selling or investing call us today for free advice on your next real estate journey
Disclaimer: Some information in this article has been sourced directly from REIWA.com.au latest news information. This article contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.
