What does Spring mean for the Perth property market?
Traditionally Spring is the time of the year when:
- The days are getting longer (and warmer)
- Footy finals are on
- Every man and his dog is listing their property for sale
So how is this year any different?
From what I can see and hear 3 things are going to take place.
- The weather will do what it always does.
- Footy finals are irrelevant given the Dockers nearly got the wooden spoon and
- A lot of properties will be coming to market in the next couple of months.
Certain types of properties are seriously out of favour. In particular, properties that are geared towards investors are very difficult to sell with Perth experiencing falling rents over the past 12 months.
However, it is not all doom and gloom. There are still plenty of first home buyers looking to enter the market as well as buyers who are going to upsize or downsize. It doesn’t really matter if the properties are brand new, renovated or need a complete overhaul.
If you are looking to buy:
If you are looking to buy a property in 2016, you need to be very clear on what you want and where you want to buy. Also allow for enough time to fully educate yourself on the local market conditions. For instance, North Perth is experiencing a completely different market to Butler.
Secondly, get your ducks lined up in a row.
- organise your finance,
- identify a great settlement agent,
- and know who you are going to use for your building and pest inspection.
If you are looking to sell:
When looking to sell your property, it is vital that you understand the local market conditions. Recent comparative sales in the area is the first thing that you need to get your head around but you should also know what else is for sale (your current competition).
When it comes to price, it is natural to start with a high asking price, in the event a buyer happens to come along and pay top dollar. However, this approach can backfire so have plan B ready if you need it. To get a record price for your property, there needs to be a lot of interest.
“Just like at the Olympics, competition generates records.”
The ideal asking price is the one that generates so much interest in your property that you get to choose between multiple offers.
Whatever your real estate intention is for Spring, rest assured that I am happy to assist. To discuss your situation please click here
If you are interested in the Perth market indicators, please see below.
What are the Perth market indicators?
There is not much of a change in the job situation. Currently there are around 8700 jobs advertised (9 September) which is down a little. So far 2016 has proven to be steady.
2. Rental Market
The vacancy rate is now at 6.7% which is terrible news for landlords and investors. The only reasonably good news is that the median rent is steady at $380 per week.
From our corner, we are still receiving rental applications on properties that are priced well and present well and this situation is unlikely to change in the near future.
Landlords in the CBD are also experiencing another tough year with more new developments being completed. It has been reported in the media that up to 8000 new apartments are being completed in 2016 and a large portion of these will be investments and at least 3 large pre sales projects have been put on hold because the developer has been unable to secure enough pre-sales.
For tips on how to increase your cashflow on your investment property click here.
The advice to investors has not changed. Secure your current tenant at the same rent they pay now if possible. There is a good chance that you need to be prepared to reduce the rate to keep the tenant. Otherwise, you risk a period with a vacancy and more than likely you will have to reduce your asking price to find another tenant.
As a landlord, if you are looking at selling your investment property, now is a good time to list it for sale. This is especially the case if a lease is due to expire in the next three to six months, as you can expect a lower rental yield. If you are thinking of selling your investment click here to discuss your situation.
3. Properties for Sale
In comparison to the last update, the number of properties that have sold has decreased again, however, there is hope that the Spring season will see an increase as we are now coming out of the traditional quiet Winter period.
………So what does all this mean for you?
To discuss your situation please contact me via the form below: