Perth Market Update for November 2015
It is almost summer and Christmas is just around the corner. There is still good activity in the Perth real estate market, but is expected to drop off a little as Santa arrives for the summer break. However, there will still be buyers looking to buy and sellers to sell during the festive season, which is why we at Mavin RE will stay open throughout the holiday period.
Outlined below are some of the market indicators that will provide clues on what to expect over summer. If you just want a quick snapshot without the details, go straight to the Take Away Message section further down the page.
1. Jobs
Throughout the year, the number of jobs advertised on Seek within Perth can best be described as constant. However, in the past couple of months the data indicates that there are less jobs being advertised. Currently there are around 10,050 jobs advertised, which is down by about 700 since September. As the end of the year approaches this trend is not uncommon, with the number of jobs expected to decline to around 8000 total in the next month.
Although the overall trend is constant, twelve months ago there were approximately 2000 more jobs advertised during this period, indicating the job market has taken a turn for the worse here in Perth.
2. Rental Market
Landlords have not had a good year in 2015 due to increasing vacancy rates and a decreasing median rental income. Unfortunately, there is no end in sight for this trend, with the vacancy rate at 5.6% compared to 12 months ago, when the vacancy rate was 4.1%. This means that property managers are receiving fewer enquiries for available rentals and a sharp drop in rental yield, with the overall median rent now sitting as low as $400 per week. In comparison, the rental yield 12 months ago was on average $450 per week.
Landlords in CBD can expect additional competition as a number of large apartment blocks are expected to be completed in the next 12 months.
For tips on how to increase your cashflow on your investment property click here.
As an investor, secure your current tenant at the same rent they pay now. If you have to find another tenant you may have a period of vacancy and may be required to drop your rental price to attract a good applicant.
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
Buyers have a huge amount of choice this year, with the number of properties on the market now exceeding 16,000. The last time this many properties were listed was after the Global Financial Crisis (GFC) in 2008.
(source REIWA).
(source REIWA).
Currently the Median price is $527,000 (September quarter), however it is anticipated that the next quarter (December 2015) will be closer to $500,000 and the number of selling days will more than likely exceed the current average of 66 days.
………So what does all this mean for you?
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