The Perth residential property market is experiencing stock shortages, according to The Real Estate Institute of Western Australia (REIWA) research.
The latest housing stock survey by REIWA reveals the daily average number of established residential dwellings available for sale in Perth in May 2005 was 7,800. The long-term average daily stock level for Perth is 12,000 properties.
REIWA president Greg Rossen said the stock shortage was partly a seasonal factor, as fewer properties were advertised for sale during the winter months.
“However, there are other more important factors behind the housing stock shortage,” he said.
“We are experiencing another upsurge in demand for properties by first home buyers as a result of the stamp duty concessions available to first time home buyers.
“The property investment sector of the market is continuing to be strong and investor demand for residential properties has risen in recent months.
“Investors are tending to hold and acquire properties at the moment and this is putting pressure on stock levels, together with first home buyers.”
The stock shortage is also reflected in the rental market, which is experiencing a low vacancy rate of available rental properties.
In the March quarter of 2005 the Perth rental vacancy rate was 2.6 per cent.
“The housing stock shortage is another point of difference between the WA real estate market and the remainder of Australia,” Mr Rossen said.
“It is further evidence that the local market is likely to escape the more significant slowing in the eastern states.”