Rental market a tale of two cities
IT continues to be a tale of two cities in Perth, with the rental market showing improvement and sales languishing.
The rental market has been gaining momentum since January and 54 per cent of suburbs recorded an increase in leasing activity in July, according to Reiwa.
The top five suburbs each increased more than 114 per cent.
“During the month, the suburbs that saw the biggest spike in leasing activity were Ballajura, Harrisdale, Balcatta, Mosman Park and Dawesville, which more than doubled their leasing activity compared to June,” Reiwa president Damian Collins said.
Reiwa.com data showed rent prices remained stable in Perth, with the overall median rent sitting at $350 per week during July.
House and unit rents also recorded no change, holding at $360 and $330 per week respectively.
“There were 23 per cent of suburbs in the Perth region Prices of homes fall again but strong signs emerge among Perth rentals, with leasing activity spiking
that saw their median rent price increase,” Mr Collins said.
“Three of the top 10 suburbs which saw the highest increase were from the luxury market, including Subiaco, Nedlands and Mosman Park, with rents rising over $650 per week.”
At the end of July, reiwa.com data showed listings for rent decreased 5 per cent to 7074 properties. In the sale market, prices declined again, down 0.5 per cent, according to CoreLogic’s latest home value index.
The median house price settled at $490,000, according to Reiwa.
The top end of the market recorded a more positive result.
“CoreLogic data shows that Perth is the only city other than Sydney that has seen the top end of the market doing better than the lower end, which we have seen this month with the demand for the luxury market increasing across leasing and sales activity,” Mr Collins said.
“Top performers which saw an increase to their median price in July were Applecross with 7.8 per cent growth to $1.52 million, Currambine with 3.1 per cent, Mosman Park with 2.5 per cent, Bassendean with 2.1 per cent and Kingsley with 1.4 per cent.”
July sales activity fell 5 per cent with 2318 properties sold.
“We saw a fall of 10 per cent in the number of units sold over the month but there was also a 10 per cent increase in land sales,” Mr Collins said.
“Suburbs with the largest growth in sales activity include Leeming, Kelmscott and Yokine.”