December 2021 median selling days in the Perth Metro region sat at just 16 days, and stock levels have dropped from 9008 to 8186 properties over the last 4 weeks.
Perth Metro rental vacancy rates sit under 3%, and markedly lower for sought after suburbs.
The Buyer FOMO is still very real.
The number of houses for sale in Sydney and Melbourne is creeping up and their auction clearance rates are falling away.
What does that mean for those of us living in the People’s Republic of Western Australia?
Here in the Hermit Kingdom the prevailing real estate sentiment is that there is still opportunity and upside.
Rental yields are expected to spike when we eventually drop the Iron (Ore) Curtain.
I am dealing with an ever increasing number of Buyer’s Agents representing Eastern States investors, chasing the next opportunity as their markets wane and we are selling property (for the first time in about 6 years) to local Mum and Dad investors. Recent times have been good to all mentioned, with a year or two of equity growth in their own homes. There is also a spike in farmer enquiry (coming off the back of a record harvest – this is hardly surprising).
Projecting ahead this renewed investor confidence should mean some movement at the bottom of the market.
Even though the market has been exceptional of late, the level of exuberance has not extended to older style apartments, older villas and older townhouses. This I feel, is about to change.
Interestingly it is reported that approximately 30% of new apartment projects are on hold due to increased building costs. This is another choke on supply of future housing stock, increasing the demand for existing properties.
With effective full employment in WA and a shortage of everything, the immediate market looks frenetic with no obvious signs of change ahead.
Derek Baston.
