Set to rise

Capital growth expectations over the next 12 months improved at all price points for established houses and apartments. NAB’s view of the market takes into account rising unemployment expecting to dampen house price growth, however NAB sees capital city house prices are set to rise by 3½% in the year to September 2014 and 3% in the year to September 2015.

The Australian Bureau of Statistics released the latest CPI figures for the September quarter this week. Perth is now second only to Darwin (3.4%) with the nation’s highest inflation rate.

At 2.6% for September this indicates Perth’s annual inflation rate is double the previous June quarter rise for Perth. The interest rate could well be on the move again, financial professionals may be holding out for a rate cut whilst other property professionals are tipping a rise towards the middle part of next year.

Listings continue to trend down taking the average selling days from 50 in the June quarter to 49 in the September quarter.

Reiwa.com data indicates the overall market median for WA has fallen 2.8% in the September Qtr with a surge in first homebuyer activity and softer upper end sales. Taking the revised June Qtr median from $523,000 to around $508-510,000. A mix of both first homebuyer and investor activity in the September quarter could well have attributed to an increase in multiresidential sales. WA remains the national first homebuyer powerhouse with the latest monthly ABS finance data (ABS Cat 5609) for August 2013 indicating the proportion of first home buyer loans in WA (excluding refinancing) actually rising to 34.5% The national trend masks the performance of some states with WA continuing to be the standout national first home buyer state both in 2012-13 and into 2013-14.

A combination of slow rental growth and faster capital appreciation suggest rental yields are marginally falling in WA with a median weekly rent at $475 for houses and 

$450 for units, dropping for the first time since mid 2000 by 1% respectively for the quarter.

An 81% increase in properties for lease over the past 12 months has finally flowed through into lower market rents as landlords adjust asking rents.

Properties available for lease have remained stable throughout the September quarter peaking in late August at 4,160. The last 6 months has seen total rental listings increase 20% but the last quarter dropped 6%.

The drop in listings has seen Perth’s vacancy rate drop back to 3.1% for the September quarter. Falls in both the median house rent to $475 / week (-1.1%) and median multi- residential rent to $450 / week (-2.2%) contributed to the fall in the overall median rent which fell 1.1% to $470 / week.

Property remains in high demand, improving for all types of new and established property. If you’re thinking about selling or leasing and would like to consider your options in today’s market, talk to the experts at DQ we will walk the journey with you.