The Perth Market Is Back On A Path To Recovery, After An Election Pause
The Perth recovery is back on track, having faltered in the lead-up to the Federal Election. Sales activity is solid to strong in many locations and some areas have had price growth.
The Price Predictor Index published by Hotspotting reported strong signs of recovery in Perth markets in 2018 and early 2019. The number of suburbs with growing sales activity in five consecutive quarters was 39, 45, 49, 51 and 53 - undeniable evidence of growing demand in the Perth metro area.
Then the revival hit a wall, labelled "Federal Election". Like many locations across capital city Australia, Perth paused amid the uncertainty created by the Election and the prospect of a Labor victory and major changes to property taxes.
Tighter finance and a highly negative media also contributed to putting the brakes on the Perth recovery. For those reasons, the number of growth markets across the Perth metropolitan area was substantially lower (37) in the Winter 2019 survey.
Now our Spring 2019 survey shows the decline has likely bottomed out, with a steady number of growth markets and improving numbers of consistency markets. There are now very few declining markets across the Perth metro area.
This comes as vacancy rates continue to tighten and rents rise. In mid-October data from SQM Research showed that the Perth vacancy rate was continuing to fall. In 2017 the rate was close to 6% and in mid-2018 it was still at 4% - but now 2.9% and falling.
Get the new edition of Top 5 Perth Hotspots 2020 to find out the best places to buy in this rising market.