Perth house and unit prices increase during June quarter

Perth house and unit prices increase during June quarter

By Hayden Groves – REIWA President     https://reiwa.com.au/

There was positive news for Perth sellers during the June quarter, with house and unit prices increasing simultaneously.

reiwa.com data shows Perth’s median house price is expected to lift to $520,000 once all sales settle, which is 1% higher than the March 2018 quarter and 2% higher than last year’s June quarter.

The median unit price also improved, lifting to $419,500 during the quarter, which is 4.9% higher than the March 2018 quarter and 2.3% higher than the June 2017 quarter.

As prices improved during the quarter, listing levels fell, which affected sales activity. This is not entirely unexpected, with the onset of a particularly wet winter in Perth deterring some buyers. Traditionally, Perth tends to see activity slow during the colder winter months before picking up again in spring.

There were some clear bright spots in the market with numerous suburbs recording more sales this quarter than last. The suburbs with the biggest improvement in house sales were North Perth, Queens Park, Singleton, Camillo and Beldon, while West Perth, Balcatta, Rockingham, Claremont and Mount Lawley had the biggest improvement in apartment sales.

Another interesting observation from the June quarter was the composition of sales once again shifted. The reiwa.com data showed there were more house sales above the $800,000 price range than last quarter, putting upward pressure on the median. A similar result prevailed in the December 2017 quarter, with quality family homes attracting strong buyer attention in aspirational areas.

As the WA economy begins to strengthen and owner occupier loans remain the most affordable they have been in decades, buyers are recognising there is good opportunity to secure a home in areas that might have previously been considered out of reach.

In other positive news for the market, listings for sale declines 1.1% during the June 2018 quarter. It’s encouraging that stock levels continue to be absorbed, despite subdued activity levels.

The reiwa.com data also showed it was quicker to sell during the June 2018 quarter than it was in the March 2018 and June 2017 quarters, and the proportion of vendors who had to discount their asking price had declined 5% compared to last year.

With the worst of the market downturn appearing over, the improvement we’ve observed in house and unit prices, as well as in other key indicators, suggests buyer confidence is returning, which should bode well for those looking to improve their wealth through property.

The digital landscape has changed how we search for property

The digital landscape has changed how we search for property

By REIWA President – Hayden Groves    https://reiwa.com.au/

Using the internet is common practice for most of us now, so it’s easy to forget only a couple of decades ago searching for property was a far more manual, arduous process.

Digital technology has immensely improved the property search landscape for buyers, investors and tenants. The sheer volume of information online is staggering, and it has put the days of relying solely on newspaper classifieds and home opens behind us.

The introduction of online real estate portals was pivotal to this, with websites such as reiwa.com making it significantly easier for buyers, investors and tenants to find a suitable property. At the click of a button, you can view every property for sale in your area, refine the search to ensure the properties you view meet your criteria, find detailed suburb information and locate skilled real estate professionals in your area.

More recently there have been further digital advances, with the popularity of smartphones taking property search to a whole new level again. Through mobile technology, you can now view properties in the palm of your hand and take them with you wherever you go – simplifying the search process even more!

In this space, REIWA has recently launched the reiwa.com app, which makes it even easier for Western Australians to search for properties, find and compare local REIWA agents, view home opens and shortlist their favourite properties and searches.

Plus, the app’s interactive mapping technology allows you to draw on a map to find properties located in a specific location, and view nearby places, such as schools, transport and shops to assess if the area is right for you.

The level of detail you can find online or in an app about a property or suburb has truly revolutionised how we search for real estate.

I encourage buyers, investors and tenants to utilise the technologies available to help educate your-self on the suburbs and properties you’re interested in. Having a good understanding of what properties are available in the area, how the local market is performing and whether the suburb is suitable for your lifestyle is key.

Be sure to tap into your agent’s local knowledge too. REIWA agents are experts in their field and know the ins-and-outs of real estate. Their experience is invaluable and can help fill in any blanks you may have about the suburb or property.

 

Bullsbrook, Glendalough great for rents

 

By reiwa.com and www.communitynews.com.au

 

Investors looking for a good rental return on their investment would do well to consider buying a house in Bullsbrook or a unit in Glendalough.

 

They topped REIWA’s lists of the best performing suburbs for rental yield for houses and units in the 12 months to April 2018. Both suburbs offered a 5.9% rental yield, which is a measure of the annual rental income generated by an investment property as a percentage of its value.

 

The higher the yield, the better the annual return for an investor. By comparison the rental yield for houses for the Perth Metro Region was 3.6% and 4.1% for units.

 

Whether they are looking for a house or unit, something close to the city or along the coast, there are plenty of affordable opportunities for investors; 19 of the suburbs identified by REIWA have median house or unit prices below the Perth medians.

 

When it came to houses, Medina was the most affordable suburb with a median house price of $240,000. It offered a rental yield of 5.4% based on a weekly median rent of $250. Stratton was the most expensive with a median house price of $340,000. Rockingham was the most affordable for units with a median unit price $242,500 offering a yield of 5.8% based on a weekly median rent of $270. Innaloo had a median unit price of $405,000

 

Top 10 Suburbs for Rental Yield – Units

Suburb                   Median Unit Price               Median weekly Rent          Rental Yield          Ave. Days to Lease

Glendalough         $243,250                               $275                                      5.9%                       49

Rockingham          $242,500                               $270                                      5.8%                       54

Nollamara              $296,000                               $320                                      5.6%                       53

Queens Park         $288,000                               $310                                      5.6%                       50

Belmont                 $315,000                               $320                                      5.3%                       54

Midland                 $281,000                               $280                                      5.2%                       65

Innaloo                   $405,000                               $400                                      5.1%                       47

Rivervale               $349,475                               $330                                      4.9%                       51

Balcatta                  $355,000                               $330                                      4.8%                       56

Cannington            $345,000                               $320                                      4.8%                       54

Perth Metro         $403,000                               $320                                      4.1%                       52

 

Top 10 Suburbs for Rental Yield – Houses

 

Bullsbrook             $320,000                               $360                                       5.9%                       52

Medina                  $240,000                               $250                                       5.4%                       53

Parmelia                $267,000                               $270                                       5.3%                       52

Armadale               $250,000                               $250                                       5.2%                       61

Cooloongup          $282,500                               $280                                       5.2%                       58

Maddington          $308,000                               $300                                       5.1%                       55

Stratton                  $334,000                               $320                                       5.0%                       55

Camillo                   $261,500                               $250                                       5.0%                       62

Warnbro                $317,500                               $300                                       4.9%                       62

Merriwa                 $320,000                               $298                                       4.8%                       59

Perth Metro         $521,500                               $359                                       3.6%                       49