WA: sales are stable but rents still falling

WA: sales are stable but rents still falling

Posted on Friday, June 05 2015 at 11:25 AM

Data released today by the Real Estate Institute of Western Australia (REIWA) shows Perth’s median house price steady at $547,000 for the three months to May but metropolitan rents falling.

Turnover with house sales experienced a seasonal lift of 13 per cent to
2,067 transactions in May, but this was down by 16 per cent on the same period
last year.

Stronger turnover was reported through the western suburbs (up 60 per
cent on April), City of Melville (up 52 per cent) and South Perth, Victoria
Park and Cockburn, all up 40 per cent.

City of Melville and the western suburbs performed best in terms of
improved sales numbers on the same time last year. 

Top selling suburbs included Butler, Ellenbrook, Willetton, Baldivis and
Canning Vale.  

REIWA president David Airey says the number of properties on the market
was still well above average with 14,363 listings reported during May, and
currently sitting at 14,293.

“There was a modest 1 per cent increase with listings in May, but there
are now 35 per cent more properties on the market compared with May last year,”
he adds.

With rentals, the vacancy rate in April was 4.5 per cent and expected to
rise as rental stock increases. Currently there are 7,616 properties looking
for tenants.

“There was a 7 per cent jump in rental listings during May, adding to 44
per cent more rental properties to the market than the same time in 2014,”
Airey says.

The biggest jump in rental listings, at 11 per cent, was recorded
through Perth’s southwest region incorporating Cockburn, Kwinana and

Competition in the rental market saw Perth’s median rent come down to
$425 per week, which typically translated to $440 for a house (down $10) and
$400 for an apartment or villa (down $20). 

Airey says Perth’s median rent is now down by 10 per cent, or $50, from
its peak of $475 per week in June 2013.

The City of Belmont saw the biggest individual drop, with its local
median falling from $450 per week to $425 per week between April and May.

Article source: http://feedproxy.google.com/~r/API_Property_News/~3/Gp3uAx5-aS8/wa-sales-are-stable-but-rents-still-falling