- Perth's property listings dwindle under 4000, sparking fierce competition among interstate investors.
- Off-market sales surge as interstate buyers seize Perth properties, driving prices up by nearly 17%.
- Strong demand and limited supply fuel intense competition in Perth's rental market, pushing rents higher.
It is no secret that Perth’s property market currently stands as one of the worst in the country, being the capital with among the lowest rental vacancies and homes for sale.
Perth residential vacancy rates
The crunch is being felt by all within the state. A recent survey found that 75% of Western Australia’s (WA) expressed that it was a bad time to rent.
Although the State Government has made much progress in stamping down on supply bottlenecks, the situation is unlikely to improve in the near future.
Interstate investors snapping up what’s left
In another disheartening development, a new report from Raine & Horne revealed that interstate investors have been rapidly acquiring properties in Perth, with the capital city’s listings having dwindled to fewer than 4,000 homes.
Perth total property listings
Raine & Horne Mandurah principal and licensee, Peter Vetten, said the scarcity of homes for sale was also being worsened by how a large proportion of them were being sold off-market.
“In the Perth metro region, there’s normally around 13,000 to 14,000 listings, and at the moment we’re under 4,000 listings,” Vetten said.
“We’ve got a serious supply and demand situation that has contributed to Perth’s prices climbing by almost 17% over the last year.”
Peter Vetten, Raine & Horne
Perth weekly asking property prices
“If you want to buy another property, you should sell and buy in that same market.”
Vetten noted that dwellings under $700,000 were selling remarkably fast.
Off-market sales are rising
Eastern state investors have been blazing through WA’s properties, with many purchasing homes before they were even listed.
“They’re essentially being sold prior to open houses; if the prices are reasonable and within the appropriate range, they’re selling rapidly,” Vetten said.
Raine & Horne licensee and director of Rockingham, Paul Curran, confirmed that similar trends were occurring southwest of Perth.
“Generally, interstate investors might represent 25-30% of our buyers. If you have a budget of under $500,000 and are looking for a gross yield of 5%, it’s hard to ignore suburbs to the southwest of Perth such as those in the Rockingham Local Government Area (LGA).”
Rockingham property gross rental yield – Postcode 6168
Recently, Curran sold an off-market three-bedroom, two-bathroom Rockingham home to an eastern coast-based buyer, all of this done within 12 hours.
“Strong rental yields of 5% are driving this demand, with a surge in buyer’s agents on the hunt for Perth properties for their eastern states clients seeing many homes sell in record timeframes,” Curran added.
Strong demand and intense competition fuel Perth’s rental markets
With Perth’s rental vacancies hovering under 1%, the rental market across Perth remains bleak. According to Vetten, crowds of around 60 attending a home open for rentals have been the norm.
“Within three or four days, we get at least a dozen applications, and it’s just a matter of cherry-picking through them,” he said.
Raine & Horne Bunbury senior sales representative, Susan Pitts, remarked that the average rent in Bunbury was $550 a week, with groups of more than 40 people participating in property viewings.
Bunbury weekly rents – Postcode 6230
“Meanwhile, demand for property is similar with 40 people at every sale open for inspection given the median house price in Bunbury is an affordable $500,000,” she said.
Bunbury weekly asking property prices – Postcode 6230
“Buyers are fast-tracking their plans to land properties in Bunbury and right along the coast.”
