September “Perth Property Market” Update- The Election Impact

Here I take a close look at the effect our federal election & First Home Owners Grant changes are having on our Perth rental and sale market. If you prefer to read, see transcript below.

The graphs I refer to in this video are here (source: REIWA)

Number of Properties for sale in Perth-SeptPerth Rental Vacancy Rate- Sept Median Perth Rent-Sept

For those who prefer to read, see the transcript here

Jarrad Mahon here from Investors Edge Real Estate bringing you my September Perth property update.  Now where we’ve been at over  the last month is things have pretty much been on hold we have been waiting for the Election to happen, the new government to get in and everyone’s just really  been taking a pause and the number of properties for sale has been hovering at 9100 -9200 properties for sale just over the last 2 months.

We are now waiting to see whether the market is going to tighten up again heading back towards Christmas now that we have a got bit more certainty or weather we going to continue trending back towards a neutral market as we have been since May. Over the last 5 months the market has been starting to soften we are still in a seller’s market  so it is a good time to sell if you need to off load any assets but we are a little bit uncertain at the moment if we are going to get good growth over the next 6 – 12 months or whether we’re just going to trend sideways for awhile so stay tuned to find out more on that next month as I am seeing it .

On the rental market side the market has been softening and we have changed in our  vacancy rate from 2% back in May up to now hovering around the  3.1% – 3.2% and what that is meaning is more properties are vacant and its taking a bit longer to rent properties. So landlords  have to listen to the market and  adjust their rental price quickly if you’re not getting the response you need so that you get your property let fast  because nothings worse than vacancy.

You can lower the rent $10 or $20 a week and that will be far less cost than a whole week worth of vacancy so think about the overall return not just about holding out to get your price.  On the medium rent side we are holding at about $480.00 per week so we haven’t really seen the softening market reflect in price yet but I expect that to show up in the stats over the next 1 – 2 months.

Other things that has been happening to affect both the sales market and rental markets is the first home owners grant and it’s been reduced from a fixed $7,000 payable for first home owners to now being $3000 for  established and $10,000 for  new property. So what I expect this is going to do for our market is we are going to see home buyers favoring building new and buying new and they are going to take a little bit longer to save up if they are going to buy established.

So it will be great for our construction industry it will probably help all of our builders get more work coming through and we will probably see some extra demand in our outer lying first home buyers suburbs where those new properties are available.  I will be watching that closely and reporting back to you over the next month or two.

The change in the home owners grant is likely to come in October when both the lower house and upper house (government) have endorse that change, so it is not yet in place.  If you are going to buy established now would be the time to do so, there is more first home buyers out and about trying to get those established properties before the grant lowers.

So that’s really what is happening in sale and rental market if you see what you like hear subscribe to our monthly community update if you’re not already ion the update list and I will catch you again next month.

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