Perth’s listing drought leaves investors eyeing units
One local buyer’s agent believes a dearth in residential listings throughout the Western Australian capital is funnelling buyers into unit and strata properties.
According to data from the Real Estate Institute of Western Australia’s (REIWA) listing portal, just under 5,000 properties were listed for sale in Perth throughout September as sales activity dwindled to its lowest levels in three decades.
This news comes despite new data from SQM Research indicating a sharp 9.3 per cent increase in national listings between August and September, including an 8.2 per cent rise in the Western Australian capital.
Regardless, the city’s dried listings opportunities have created a competitive buying environment, local buyer’s agent Peter Gavalas explained.
“With the current shortage of available homes in Perth, competition among buyers is fierce, resulting in homes selling in just nine days on average,” he shared, with this environment placing upward pressure on prices.
CoreLogic’s September Home Value Index (HVI) found prices in Perth climbed 1.3 per cent in September as part of an 8.8 per cent annual rise. This has culminated in the city’s median home value sitting at $618,000, making it the nation’s second most affordable city.
Tim Lawless, research director at CoreLogic, said: “The three capitals recording the highest capital gain [of which Perth is one] each have advertised supply levels that are around 40 per cent below their previous five-year average.”
Noting the city’s relative affordability, Mr Gavalas did point out that “some home buyers are starting to find it more challenging to enter the detached housing market”.
“This is where unit and strata properties come into play, as they typically offer a more affordable entry point,” he added. CoreLogic’s September HVI revealed the Western Australian capital’s median unit price was approximately $437,800 – around $180,000 cheaper than houses.
As a result of their position as an affordable market gateway interest in Perth, unit and strata properties have picked up, with Mr Gavalas indicating their relative low maintenance in comparison to houses, which, amongst other things, often have wide lawns and dense gardens to keep, increases their appeal.
“The reduced maintenance responsibilities can be particularly appealing to investors, as it can translate to lower ongoing costs and potentially higher rental yields,” he explained.
Playing a key role in unit and strata properties’ increased attractiveness to investors hunting a slice of Perth is the present low vacancy rental climate in the Western Australian capital.
Earlier this month, data from REIWA found the capital’s vacancy rates is hovering near record low levels, with an end not within sight.
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