Sales rise as rents tighten in Perth
Despite an 11.4% increase in sales overall the number of available rentals has continued to decline, highlighting a shortage of rental supply which has has been plaguing the city for over a year now.
Sales activity in Perth increased by 11.4% in the week to May 29, 2022, with a 10.8% increase in house sales and a 12% increase in vacant land sales at the origin of the increase. Sales activity had the potential to increase further were it not for a 1.8% reduction in unit sales during the week.
Members of the Real Estate Institute of Western Australia (REIWA) reported 959 transactions during the week, an increase from transactions recorded four weeks ago and in the same week last year.
Of those 959 sales, 710 were homes, 194 units and 55 vacant lots, with the Baldivis, south of the Swan River, recognized as the best-selling suburb, with 26 sales completed last week.
This made up 8,521 property listings in Perth last week, up 1.1 from the previous week. The number of listings for homes (4,421) and vacant lots (1,683) also rose 1.1% from the previous week, with unit listings (2,407) up 1% from the previous week. to the previous week. This volume of registrations is exactly the same as four weeks ago and approximately 700 less than at the same time last year.
In terms of rentals, there were 2,315 properties for rent in Perth at the end of last week, according to results reported by REIWA members.
These figures represent a decrease of 2% compared to the previous week, as well as a decrease of 7.3% compared to the previous four weeks and 18.6% compared to the same week last year. Meanwhile, rental activity fell 4% last week, with just 689 properties rented during the week. This represents an increase in the number of properties rented four weeks ago (586) but a drop in the numbers compared to the same week last year (750).
Perth was the best performing suburb in terms of properties rented, with 31, and rentals available, 97. East Perth was the second best performer in both categories, having rented 16 properties the previous week out of 89 rentals available.
In addition, rents in and around Perth have fallen by 2%, with the median rent now standing at $500 a week, allowing Western Australia’s capital to remain the third cheapest capital compared to the median rent.