Last year, our challenging market eagerly welcomed encouraging movement as historically low interest rates, improved population growth and the resurgence of the first home buyer all surfaced. And in the latter half of 2019, industry experts opened the conversation of a slow, but likely market recovery.
Reflecting on the last quarter of 2019, we witnessed positive signs of buyer sentiment improving as buyers re-entered the market in our established suburbs.
According to REIWA, there were 12,410 properties for sale in Perth at the end of December*. REIWA data indicates that the listing figure was down seven per cent compared to the September quarter and 23 per cent down compared to December 2018*.
December 2019 data from REIWA also indicates properties sold 16 days quicker than in the September quarter, taking on average 67 days to sell*.
“We can attribute this decrease in listing stock to a number of factors. One factor being seasonal trends – we generally see a dip in new stock coming to market in the last part of the year. Another factor is that good quality stock is moving quickly due to increased buyer demand – particularly at the higher end of the market.” Said Realmark Director, John Percudani.
“Just recently Ryan Smith of Realmark Urban sold a Floreat property off-market, with zero dollars spent on marketing at a great price for his seller. Although this isn’t possible in all cases, it is a very positive indication of the level of buyer interest in Floreat and other similar suburbs.” Said Mr Percudani.
In a recent Domain Report, REIWA President Damian Collins confirmed the oversupply in established areas within a 15-kilometre radius of the city is essentially gone. We predict that in time, the remainder of Perth’s suburbs will follow – however this may be a long drawn out process.
If you’re looking to acquire new properties to add to your portfolio, we recommend acting now before the market shifts and house prices rise – in some Perth suburbs this is already the case.
In terms of areas in high tenant demand, suburbs such as Floreat and Mount Hawthorn have been very popular among renters due to appealing school catchment zones, and Scarborough’s popularity has increased even more since the completed development on the Scarborough Esplanade.
If you’d like to talk to us about investment opportunities that may compliment your portfolio, we invite you to get in touch.
Sources
*Perth properties selling quicker in December 2019
**Perth rents hold steady in December quarter as market tightens