JANUARY 2017 – PROPERTY NEWS UPDATE
Rental Market Update
According to REIWA this month, “The leasing activity has dropped by 2% in Perth in the month of December 2016. But if we put it in a different perspective, the rental activity has increased by a noteworthy of 27% when compared to December 2015.
Corporate City has outperformed the industry standard and managed to keep our portfolio’s vacancy rate low at 2.5%, equivalent to only 6 properties currently vacant comparing to Perth vacancy rate of 6.9%. We would expect Perth leasing activity to increase in the month of January to April as this would be the peak season for tenants and companies to look for new accommodation.
Sales Market Update
According to REIWA stats this month, Perth’s median house price increased by 2% in the 3 months to December 2016. The number of listing for sale in Perth has declined 11% in December 2016 which is very unusual as December is known to be very quiet as most people are on holiday. We could also see a great improvement from December 2015 as the listing volume has dropped by 3%.
To top up with more good news, The WA government is offering temporary $5,000 boost on top of the $10,000 to Eligible first home buyers who enter into a contract between 1 January 2017 and 31 December 2017 to purchase or construct a new home, and owner builders who commence laying foundations of their home.
This would also be a great opportunity for buyers to purchase a property before the Cash Interest Rates increases.