August Perth Property Report
With the budget, end of financial year and winter all happening around the same time it’s not surprising the market has slowed down a bit. With these events behind us will it pick up?
Dwelling values increased by 1.6% across the combined capital cities in July and rose by 1.1% over the three months to July 2014. Only Sydney, Melbourne, Darwin and Canberra experienced rises. The same trend also occurred for the past three months. Perth fell by 0.5 percent and 0.1 percent in the mentioned time frames. Median prices across the country are $555,000 for houses and $475,000 for units. Perth’s prices are currently at $535,000 and $437,750 respectively.
In Perth units outperformed their counterparts in terms of capital gains over the past 12 months. They increased by 8.4 percent compared to the 2.7 percent seen in houses. For July units in Perth by 1.4 percent while houses decreased in value by 0.6 percent. Melbourne had the best month for any of the Australian capitals with dwelling values rising by 3.7 percent.
Capital gains continued to outpace rental growth meaning rental yields were down across the nation. Perth houses had a gross rental yield of 4.2 percent, higher than the national yield of 3.8 percent while the unit yield of 4.6 percent was the same for both. Darwin had the highest yields of 5.9 percent and 5.8 percent respectively while Melbourne has the lowest of 3.3 percent and 4.2 percent.
Dwelling approvals have been outpaced across the country by population growth since 2004. Over the past year WA’s population increased by 2.9 percent. This was 1 percentage point greater than the next highest state, Victoria, and close to double the national average.
There are signs consumer confidence is bouncing back from the slump that was a result of the budget. A reason for this could be because the record low cash rate was left untouched by the RBA for the 12th consecutive month and it looks set to stay that way for the foreseeable future.
So with consumer confidence getting back on track, interest rates remaining low and population growth still strong there could be plenty of life in the Australian property market!
To speak with one of our expert brokers today please contact us on 08 9242 3300.
Source: RP Data