Perth market falters again
The Perth market is showing signs of weaknesses, with both the median price and rent dropping in the past six months.
According to preliminary data from the Real Estate Institute of Western Australia (REIWA), the median house price for the March quarter was one per cent lower than expected.
The REIWA revised its estimate for those three months from $550,000 to $545,000.
“Most house price movements were a modest one or two per cent, with the exception of four per cent growth in the City of Canning and a four per cent fall through the northern part of Joondalup and the southern part of Wanneroo,” REIWA president David Airey said.
Sales were also down across the most recent quarter by around six per cent, a trend which began early last year.
“On current figures it looks like the June quarter results will put house sales in Perth at about five per cent below the 15-year average, while in regional WA it’s closer to 22 per cent,” Mr Airey said.
Correspondingly, stock numbers are up by 25 per cent on the March quarter last year.
Landlords in Perth are also facing difficult conditions.
The vacancy rate has climbed up to 4.2 per cent in the June quarter.
Rental listings are up by 43 per cent on July last year.
These trends are putting downwards pressure on rents, as a result of which the median rent dropped by $10 to $450 a week.