July Perth Property Report

With the financial year concluding it’s a good time to review the highs and lows for the Perth and national property market over the past 12 months.

The national market finished the year with dwelling values rising by 10.1% for the period. This was largely driven by Sydney’s capital gains of 15.4% and was the only city to have achieved double digit growth. Meanwhile in Perth, house values increased by 5.0% over the past year compared to an 8.9% rise in unit values resulting in overall growth of 5.2% in the market.

The three months to June saw dwelling values fall for the first time in over a year, -0.2%. Perth rose 0.6% which meant it was only one of three cities that recorded positive growth over the second quarter. Melbourne was the biggest loser with values dropping by 2.4%.

Over the past decade Perth has been the standout for capital gains along with Darwin. Perth’s average annual change of 7.4% is well above the capital mean of 4.5%. Considering the GFC was during this period the WA capital has done remarkably well for those who have held onto their properties.

Perth median dwelling values currently sit at $532,000 for houses and $440,000 for units. These are lower than the capital cities average of $580,000 and $482,000, respectively. It should be pointed out that Sydney’s median prices of $800,000 and $586,000 has had a big influence over the national figures.

Perth median weekly rent for houses fell by 1.7% over the financial year but rose 0.2% for units. Despite the decrease the current median rent for houses of $502 is greater than the national average of $486. While the $453 for units is slightly less than the median of $456. The respective rental yields, 4.2% and 4.7% are also both currently higher than the Australian rate, 3.9% and 4.6%.

For the past financial year the big winners in the state were the Pilbara, Kimberley and Upper Great Southern regions which all had growth of 8.5%. The Central and South West areas also did well rising by 7.4% and 7.3% respectively. The only region to record a downfall was Midlands which dropped by 9.9% in the past 12 months.

For the past financial year it has been the middle priced market that has been the best performer, experiencing annual capital gains of 10.7%. The top 25% of houses was just behind, growing by 10.4% while most affordable market improved by 8.8%.

Now that tax time has arrived make sure you have everything required in order. It is also important you understand what you are eligible to claim as a tax deduction so you can take advantage of the benefits available to you from your investment. Read our full list of tax deductions.

For assistance with any of your property needs call our award winning team on (08) 9289 7777.

Source: RP DATA