06/10/2015 - 11:29

50% jump in vacant Perth rentals

06/10/2015 - 11:29

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The weak state of the residential property market in Perth has been highlighted by new data from the Real Estate Institute of WA showing a further decline in the median house price and a sharp jump in the number of vacant rental properties.

50% jump in vacant Perth rentals

The weak state of the residential property market in Perth has been highlighted by new data from the Real Estate Institute of WA showing a further decline in the median house price and a sharp jump in the number of vacant rental properties.

The median price of a house in Perth fell by 2.7 per cent in the September quarter to $535,000 according to the Reiwa data, while the number of rental properties on the market has jumped by 50 per cent.

The $15,000 slide in the median price came as listings for sale rose by 9 per cent during the quarter, and were up by 44 per cent on the same time last year.

It follows the release of statistics by CoreLogic RP Data last week, which found a 0.7 per cent decline in the value of dwellings in Perth in the September quarter, with the median value sitting at $492,200.

Reiwa deputy president Hayden Groves said the adjustment in price of 2.7 per cent was quite modest given the high number of properties on the market.

“Currently we have almost 15,000 listings on the Perth market, which is up by about 3,000 on what we would consider normal,” Mr Groves said.

Suburbs in the north-east region including the shires of Kalamunda, Mundaring and the City of Swan reported the biggest growth in listings in the three months to September, with a further 305 properties added to the sales market combined to bring a total of 1,952 listings.

The data also found sales turnover was down by 14 per cent on the previous quarter.

The top overall selling suburbs included Butler, Ellenbrook, Bayswater, Baldivis and Canning Vale, while Fremantle, Gosnells, Cockburn and Armadale were the few areas to report an increase in turnover.

In the rental market, the vacancy rate lifted slightly to 5.4 per cent, with about 8,311 rental properties on the market.

Mr Groves said that was almost 50 per cent more than the same time last year.

“As a consequence, the overall median rent has dropped to $410 per week across Perth, and is now typically around $420 for a house and $395 for a unit, apartment or villa,” he said.

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