November Perth Property Report

With the year coming to an end in a couple of months this months property report focuses on the information you need to begin planning, if you haven’t done so already, for the new year and after.

Dwelling values increased by 1.0% to $545,000 across the combined capital cities in October however, only Sydney (1.3%), Melbourne (1.9%) and Brisbane (0.6%) recorded gains. Perth prices fell by 0.1% for the month to a median dwelling value of $525,000.

Over the 12 months to August 2014 there were 349,612 houses and 135,914 units sold across the country. This is a 7.7% increase in dwelling sales from the previous period a year ago. Further broken down there was an 8.8% change in houses and 5.0% change for units. Western Australia (-3.4%) and the ACT (-8.3%) were the only states which didn’t experience a year-on-year increase in sales. Tasmania and Queensland had the largest difference in sales with 18.8% and 14.9% respectively.

September was the first ever month where the value of monthly investment loans ($11.9 billion) has been greater than that of owner occupier new loans ($11.8 billion). As can be seen from the below graph, while owner occupier new loans have slowed, investment has continued to surge.

Across the country, the annual rental rate for dwellings increased by 1.3 per cent for the September quarter. While in the capital cities, houses experienced no change but rental rates for units increased by 2.4%. Darwin has the most expensive weekly rent for both houses and units with $660 and $550 while Hobart has the cheapest with $330 and $275.

Perth’s weekly house rent is down 3.8% for the year to date to $462. Weekly rents for units have been more resilient and currently sit at $450 after falling 1.1% for the year. The big losers over this period in Perth have been houses with five or more bedrooms. They have seen a fall in rents of 13.3% compared to decreases of 5.7% for four bedroom houses and 2% for three bedroom houses. The performance across each unit stock type was less varied, with two bedroom units, -4.4%, and three bedroom units ,-4.0%, experiencing the largest declines, while one bedroom units saw rents fall by -2.7 %.

Perth only

With rental rates falling in Perth an interest rate rise may have a severe impact on your financial plans. Don’t take a risk by switching to a fixed rate. Finance Detective will find the lowest product that is right for you. Call us today on 08 9242 3300 or email info@nullrdfinance.com.au.

Source: RP Data