In Western Australia, most of us are familiar with the impact of mining downturn. Perth is one of the affected cities which is currently experiencing a sales drop and increase of listing.  One of the factors which are obviously reflected is the population growth. It is slowed down due to unemployment and business confidence declined. It rapidly changed the market which led to have higher vacancy rate.

According to the Real Estate Institute of Western Australia, “The vacancy rate is now more than 5% – its highest since December 1995, when Paul Keating was Prime Minister and Coolio’s Gangsta’s Paradise topped the music chart.”

The median weekly rent for Perth is $420 for houses and $395 for units. Perth is included for the top 10 suburbs for rental discounts in units. Investors are preferably wants to buy or demand into a smaller house which has low maintenance.  Due to high supply and low demand, many properties are on the market for long and hardly get a tenant. Rental rate in Perth last month was recorded very low. Will this scenario continues or has relief on the spring season?

http://www.perthnow.com.au/realestate/news/perth-tenants-on-top-as-wa-rental-vacancy-rate-hits-20-year-high/story-fnhlgriw-1227524083658


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National Housing Market has slowed down. It led to negative movement because of the downturn in resources investment. Many are expected the market to soften but sometime flatten. New listings are going up but it takes time to off from the market. Perth vacancy rate is 4.8% and this is too high.

According to ANZ Property Council Property Confidence Index, “WA is currently showing the lowest level of confidence across all property sectors in the country.”

Buying opportunities open up for investors looking to buy low, but the market continues to weaken. The Perth market is in a downturn and continues for the coming years. House prices remain softens and it’s time for a buyer’s market for the state recession continues. Slowing population triggers and created the oversupply. Rent is in the market suffered the most because of the end of mining boom.

“Further evidence of the impact that a slower economy is having on the residential sector is the rental market where Perth’s vacancy rates are the highest since 2009 (close to 5%) according to REIWA figures, with over 8000 houses available for rent in Perth.”http://blog.realestateview.com.au/2015/09/perth-property-market-mighty-fallen-bad-news-investors/


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