The spotlight is on rentals as they take the lead in the recovery phase of Perth’s property market
Perth buyers can finally breathe easy as the property market begins its longawaited resurgence – with the rental market leading the way.
“Perth’s rental market appears to be building on the momentum of the latter half of 2017, which is very encouraging – not just for the rental market but also for the overall property market,” says Hayden Groves, president of the Real Estate Institute of WA.
In general, rental rates were stable for the 12 months to April 2018, and finally they are slowly on the rise.
“All subregions experienced stable median prices, except for the South West subregion. It bodes well for landlords that the house and unit median rents are improving simultaneously,” Groves says. In that period, the number of rental properties in Perth passed the 14,000 mark, with the suburbs of East Cannington, St James, North Fremantle, Booragoon and Ellenbrook recording the greatest increases in leasing activity.
“Four out of the five subregions saw an improvement in leasing volumes, with the Central subregion (up 7.7%) and North East subregion (up 6.1%) the standouts,” Groves says.
Beyond the metro
With things heating up in Perth, perhaps buyers should not delay entering the market.
“Perth’s market often goes through two to three years of correction, followed by two to three years of growth,” explains Matthew Lewison, director of OpenCorp.
“When the market starts to move in Perth you want to be involved early as the upswing usually goes quickly but doesn’t last a long time.”
It’s not just investors who need to get in there – owner-occupiers should, too, in order to address the issue of oversupply in the face of high vacancy rates.
“The real activity needs to start happening in the established housing market with owneroccupier buyers,” Lewison says.
The available options go beyond Perth, with other pockets starting to thrive as well, likely due to the spillover effect of the capital’s uptick.
“With Western Australia’s economy stabilising, some of the regional markets have improved more than Perth,” says Propertyology managing director Simon Pressley.
“Properties are selling much quicker now than a year ago in the lifestyle market of Broome, Busselton in the south, and in both Karratha and Port Hedland in the Pilbara.”
SUBURB TO WATCH
SUBIACO: Houses stand firm
A major centre of nightlife in Perth familiarly known as ‘Subi’, the suburb of Subiaco offers its residents a lively lifestyle as well as a fairly strong house market.
The commercial scene is centred on Hay Street and on Rokeby Road, which has many shops and cafes. Subiaco Oval, also known as the Domain Stadium, is in Subi, as are Mueller Park and the Regal Theatre. Catherine Street is lined with lovely Victorian terraces.
There are several hospitals in the suburb: the St John of God Subiaco Hospital, the Princess Margaret Hospital for Children, and the King Edward Memorial Hospital for Women. Perth Modern School, the sole academically selective institution in WA, is located here.
Growth: House prices remain steady after growth of almost 9% in the past three years
Amenities: Subiaco is home to several hospitals as well as shops and cafes