Phil's Property Corner
August Market Update
Thank you for your continued support as a referral partner with Candour Property Group. I have included my Monthly Market Update below.
Perth’s Median House price has dropped by 1.9% to $510,000 in July with slower sales activity, you can see REIWA’s July Market Update here. We did however see a marginal decrease in the number of listings on the market over the month.
The rental market is another story however, with leasing activity improving and the rental vacancy rate decreasing further to 4.8%. The Median Rental is still stable at $350 per week, the tipping point to this average rental increasing has been between 3.5% and 4% vacancy rate. Considering we’ve come down from 7.3% to 4.8% over the last year this reaching this sweet spot is looking likely in the not too distant future. This steady improvement appears to confirm that Perth’s population is beginning to increase consistently once again, a strong sign for the Perth market.
The June 2018 Consumer Confidence Survey for WA shows the highest results in four years with 82% of respondents indicating that they expect the WA economy to improve or remain unchanged over the coming quarter, up 3% from last quarter. In a positive sign for jobs, 20% more young people surveyed indicated that they felt their job prospects had improved over the last year with 8% of older respondents suggesting the same. The full report can be found here, it contains some really interesting results and is well worth checking out.
The results of these surveys are lining up nicely with the job numbers coming through too. As of June WA’s unemployment rate was down to 6.1%, the third consecutive month that it has fallen, down from 6.9% in April. The even more promising stat is that WA has the extended our advantage in participation rate (percentage of population participating in employment), higher than any other state in Australia, at 68.5% seasonally adjusted. With the addition of close to 10,000 mining jobs over the coming months the jobs sector is well and truly on the path to improvement.
Deloitte Access have suggested that the signs are all aligning enough so that they consider WA to be ‘out of the woods’, with the recovery continuing for the rest of 2018 and accelerating into 2019. The West Australian have written an article that you can find here.
Bank valuers have been quite nervous about the trajectory of the Perth property market for the last couple of years, which has made it a lot harder to review your finance arrangements or consider investment as they were giving very conservative values on Perth homes. There is a fair bit of evidence coming through that they are being far more representative of likely market sales price now that there has been several months of solid market conditions.
If you’ve been looking at having your loan structure reviewed or to see whether you’re in a position to consider leveraging your equity to get a positive cash flow investment, it may well be worth your time to explore your options.
If you’d like to know more the next step is to chat with Phil Bertram. There is no obligation to proceed any further than you’re comfortable with and he doesn’t charge for his time.
To arrange for him to call you please email him with your name and contact number on email@example.com and he’ll be in touch. Or contact him directly on 0477 228 803.
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You can find all previous Market Updates here.