July: Continuation of the Steady Trend

by joy.manginsay 12. August 2014 17:48

REIWA reports that Perth’s property market cooled further in July with lower sales turnover, fewer listings and a slight median price dip.

According to REIWA President David Airey, “July figures were normal for winter and expected the market to pick up in spring.

 

The July quarter indicates that the declining trend in Perth’s median price has continued. It is not surprising to have this result because of the affordable market which pulling down the median. Some suburbs dropped their rents per week but Perth’s rental market is steady over the period. The prices were down and the rental market is cooling with median price decline by 1.8% at the three months to April. Perth median rent is still $450 per week and predicted the rise of vacancy rate. Therefore, if the vacancy rate is increasing, probably the rents will become soften.

http://www.perthnow.com.au/realestate/news/perth-house-sales-down-10-per-cent-median-property-price-down-02-per-cent-to-540000-for-three-months-to-july-says-reiwa-data/story-fnhlgriw-1227014236263

 

“Renting Fast in a Slow Market”

by joy.manginsay 7. August 2014 23:45

Reduced rental demand is the key feature of the Perth residential market at present.  Tenant enquiry volumes are significantly down, leasing timeframes have blown out from 1-2 weeks vacant a year ago to 3-4 weeks and beyond.  What can you do as an owner to lease your property quickly?

Firstly, ensure your property is ready to rent.  The front lawn and gardens must be trim and weed free. Cut excess vegetation away from the front windows and entrance.  Inside, professionally clean the carpets, do a full vacate clean of the house, and repair all minor maintenance items.  Remove any rubbish or old tenant belongings left behind.  Check all lights have operating globes, heaters are operational and kitchen appliances work.  Positive first impressions are vital in this weak market.

Secondly, ensure your property is marketed well.  Use a professional photographer, erect a professional for lease sign, and write professional advertising copy.  You will need to be listed at a minimum on realestate.com.au and reiwa.com.  In addition you will need to conduct home opens twice a week.  Tenants do not show up for by appointments much anymore.  Relying on the phone to ring, classified ads in the newspaper and online with gumtree screams “private landlord” and is a magnet for sub-prime tenants.  You may as well leave the keys in the meter box now.

Thirdly, be prepared to review your asking rent.  If your property is vacant for more than two weeks, then cut the rent now, and cut it hard.  Drop the rent by a minimum of $30 per week.  You cannot retrieve the lost rent from empty weeks, but you can increase the rent to a sitting tenant at the 6 or 12 month lease renewal.  Focus on getting a rent-paying tenant in the property, not the actual rental amount.

Fourthly, do not drop your screening standards.  If you have already got your property looking good, marketed well and dropped the rent, it will lease.  It is better to wait another couple of weeks than to place a bad tenant and lose thousands of dollars in repairs and rent arrears.  Be patient and a decent tenant will apply. Remember when the rental market was hot and you never had an opportunity to get inside your property to repaint and spruce up?  Guess what, now is your time!

Adam Bettison

Managing Director

 

HouseSmart Real Estate Pty Ltd

Snapshot for July: Perth market Softens

by joy.manginsay 7. August 2014 22:31

According to REIWA, “There has been a one percent fall in June quarter median house price over the period from May to July. The current median house price now sits at around $520,000.

The latest Real Estate Institute of Western Australia (REIWA) market snapshot for the three months of July shows the Perth sales and rental markets have softened.

 

REIWA released the market snapshot for three months to July and it shows that there was a fall in June quarter median house price. Maybe some were noted for a small softening in sales. The rental market represents stable because there is no change but compared last year, there is a big jump. The latest median rents in Perth were stable at around $480 for a house and $455 for a unit, apartment or villa. If mining will boost, it really helps the market to become stable. There is a possibility also that interest rate will changed.

http://www.rebonline.com.au/breaking-news/6599-perth-housing-market-softens

 

House Prices and Rents continue to fall

by joy.manginsay 29. July 2014 18:43

According to REIW Deputy President Hayden Groves, “As a result of that its dragged the median house price down across the Perth Metropolitan area, mainly because the composition of the market has changed with a lot more lower priced properties selling during this quarter.”  This is from REIWA that’s shows Perth’s median price has dropped. The drops driven by an increase in rental properties and low interest rate plays a role in housing market.  Vacancy rate has increased because of having more properties. If the rental growth will continue to perform well, it will help the outperforming housing activity in the wider economy.

http://www.abc.net.au/news/2014-07-26/house-prices-fall-in-perth/5625900

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Property Market turns to Steady

by joy.manginsay 25. July 2014 18:28

According to operators canvassed for a Sunday Times Real estate marker wrap, “ Buyers and sellers are on wildly different pages as Perth’s property market transitions from “buy” to “steady”.” Many Investors are usually watch the market closely and noticed a massive decline in people at home opens.  Will the house prices collapsing or it is a good time to buy? The market is now dominated by “consistency markets” because of the low interest rate and a decline of housing growth. If there will be an increase of interest rate, there will be a possibility to stabilized the market into a busy market.

http://www.perthnow.com.au/realestate/news/perth-property-market-in-transition-from-busy-to-steady-agents-say/story-fnhlgriw-1226997366504

Perth Median Rent Increase

by joy.manginsay 24. July 2014 18:11

Perth market is being dominated by house and land packages. The metropolitan was not diverse enough to meet the needs of Perth residents. Although, the proportion of renters has been reasonably steady but the most tenants are preferably live in a typical house than units.

According to data from the REIWA, “The median rent in the city dropped by $10 to $450 per week.”

According to REIWA President David Airey blamed an over-supply of rental properties for the soft conditions.

 

Despite of the downturns, median rent increase. Due to the freed up more properties for rent and this is the reason why Perth’s current vacancy rate is now higher than average. Because of this slow-down in population growth and large numbers of renters taking advantage of very low interest rates. Houses are generally higher with a median $450 per week.

http://spionline.com.au/home/13072-perth-rental-market-weakens-further

Australian Market produces Investments

by joy.manginsay 18. July 2014 18:31

According to Recent Research conducted by RP Data, dwelling values climbed 10.1 to over 12 months to July. Furthermore, interest rates continue to hover around record lows and lender competition is running hot.” We all know that residential property market is Australia’s single largest and most valuable asset that driven the economy become competitive to other countries.  Because of migrants, investors and home buyers, property market boasts investments and encourage them to invest that proves a lucrative investment. Having stable interest rates push through the investors and homebuyers to pursue home loans that’s makes the market and value growth increase. Even Australia is one of the expensive houses but still many investors were purchasing investment because of those suburbs that worth living for.

 

“According to Mortgage Choice’s recent First Time Investor Survey, one in three investors is looking to purchase property as a way to “secure their financial future.”

http://www.mortgagebusiness.com.au/blog/7478-property-market-proving-a-lucrative-investment

Is it better to Own or Rent?

by joy.manginsay 16. July 2014 23:08

According to Reserve Bank of Australia’s Economic Research and Financial Stability Department, “If potential home buyers expected house prices to rise faster than 2.9% (a year) then buying would be more attractive than renting.” House prices would have to rise but house price growth was to be slower, therefore home buyer would be financially better off renting. When the price growth will likely somewhat less in the future, it affects the house prices, interest rate and rent, household is probably better off renting than buying.

 

“If real house prices grow at their historical pace, then owning a home is about as expensive as renting.”

http://www.perthnow.com.au/news/reserve-bank-paper-states-29-per-cent-is-the-magic-number-for-deciding-whether-to-buy-or-rent/story-fnhnv0wb-1226988577880

Will median Rent Tumble?

by joy.manginsay 15. July 2014 19:07

Rental growth has been outperforming in the economy. Perth has the 3rd highest median weekly rent in Australia. But will it be sustainable or likely fell down?

According to REIWA President David Airey, “The Institute’s preliminary analysis for the June quarter showed the median rent down by $10 to $450 per week.”

According to Real Estate institute of Western Australia, “Perth’s median rent has taken a further tumble.”

 

When the demand was so high in the previous months, investors had built buildings and houses to supply the demand. But due to increase rental stock, rent softens and vacancy rate has risen by 4.2%. Perth experienced also rent increase due to localized demand. Property market is no different and it will be continue to become affordable.

http://www.perthnow.com.au/realestate/news/perths-median-rent-down-by-10-to-450-a-week-in-june-quarter-reiwa-data/story-fnhlgriw-1226984480549

NAB: 17 points Reduction in Residential Property.

by joy.manginsay 11. July 2014 18:28

National Australia Bank released Residential Survey yesterday, the survey shows that Australia’s housing market sentiment has fallen as expectations for price growth in the coming years slipped. Housing price growth slows and rental pressures continue to weaken, based on the survey. If this data will continue, the market will flatten and fall behind. Despite of the cooling market in all states, Perth and Sydney will continue to lead the market. If the housing affordability will continue and will have secured jobs in all states, homebuyers and investors may come back and invest. These are the factors that buyers considered when they invest the market.

 

NAB forecasts the average house price growth by 4.6% through the year to June 2015. The sign has cleared that were will have a sustainable market. Nab also revealed a nationwide reduction in residential property index by 17 points.

 

Residential Property Survey _June 2014_.pdf (136.12 kb)


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