Good news for Perth tenants as rent prices fall

Real Estate Institute of Western Australia (REIWA) have released the June 2017 quarter real estate market snapshot, which shows that median house prices and sales are falling alongside rent prices.

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Source: REIWA.com.au

It’s an interesting outcome considering March 2017 quarter results painted an optimistic picture of the Western Australian property market decline coming to an end. 

The median price for house sales in the Perth metro area was recorded as $508,000 in June 2017 quarter, falling $11,000 from March 2017 quarter. 

The number of properties sold also dropped from 6,181 (March 2017 quarter) to 5,807 (June 2017 quarter). 

June 2017 quarter figures:

June 2017 March 2017 June 2016
House sales Median price $508,000 $515,000 $538,000
Number sold 5,807 6,181 5,978
Unit sales Median price $408,000 $419,250 $410,000
Number sold 1,310 1,444 1,233
House rent Median price $360 p/w $370 p/w $390 p/w
Vacancy rate 7.3% 6.5% 6%
Unit rent Median price $330 p/w $340 p/w $350 p/w
Vacancy rate 7.3 6.5% 6%

Earlier in July, REIWA president Hayden Groves stated that the preliminary June 2017 quarter figures showed that WA was “certainly not experiencing the steep declines across the board we once were.” 

“Although no one can accurately ascertain the future of the property market, the signs are there that we have finally found, or are very close to finding, the ‘floor’ of the market.”

However, the results are ideal for tenants, with rent prices dropping for houses and units.   

The weekly rent for a house in the Perth metro area is now $360, and $330 per week for a unit. 

“Although we still have plentiful choice in the market, we do appear to have hit a ceiling and are no longer seeing the increases we once were,” said Mr Groves. 

“As long as transactions remain steady, we should see listing levels decline.”

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