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State of Markets – WA December 2011

01 DEC 2011 • By Phillip Tarrant • 3 min read • Hotspots

Essential information, plus expert insight on what is shaping the national property market...

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WESTERN AUSTRALIA

Fast Figures

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  • $495,000 – median house price, Broome
  • $470,000 – median house price, Perth

Rents on the rise in Perth
Investors seeking a property with strong rental yields should turn their attention to Perth.

Renters have flooded the Perth market, sending available stock plummeting by 20 per cent in the third quarter of this year, the Real Estate Institute of Western Australia (REIWA) said.

“With house sales in Perth rising by just one per cent for the September quarter and sales of units, apartments, villas and townhouses falling by seven per cent, households are looking to rent rather than buy in these uncertain times,” said REIWA President David Airey.

The preliminary vacancy rate fell from 3.4 per cent in the June quarter to 2.8 per cent at the end of the September quarter.

“Accompanying this tightening of the vacancy rate has been a $15 per week, or four per cent lift in the overall median rent for Perth during the September quarter,” Mr Airey said.

Interestingly, the rent increase was not uniform across the metropolitan area, although this could be attributed to the mix of property being leased, Mr Airey said.

Prices tipped to soar in the capital
Not to be outdone by Sydney, Perth’s residential property prices are tipped to soar, with hungry investors looking to cash in.

According to lender’s mortgage insurance provider QBE LMI, Perth is expected to see prices grow by 19 per cent.

“Price growth [in Australia] is forecast to be strongest over the next three years in Perth and Sydney,” QBE LMI chief executive Ian Graham said.

“The substantial level of investment in mining and resource capacity in Western Australia will drive solid income and population growth, creating robust demand for housing in Perth.”

Brisbane and Darwin are also expected to record strong growth in the three years to June 2014, with economists predicting 16 and 17 per cent growth respectively.

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Phillip Tarrant

Phillip Tarrant

AUTHOR

Phillip Tarrant is executive editor – Real Estate at Momentum Media. He is also an investor with a large property portfolio.

He leads the content strategy and corporate growth for a range of market and business intelligence platforms at Momentum Media, including Smart Property Investment – the authoritative voice for Australia’s property investment community.

As head of the Smart Property Investment Podcast Network, he also steers the largest network of property podcasts in Australia, which collectively generates nearly 2 million downloads every year.

There are over 2.6 million investment properties in Australia, with over 2.1 million Australians (or around 8 per cent of all Australians) owning one or more investment properties. A vibrant and critical sector for creating wealth for Australians, the property investment sector is expected to remain a pillar to the national economy.

For nearing a decade, under Phillip’s stewardship Smart Property Investment has been informing and educating property investors on the tactics and strategies to create wealth through property.

Trusted by over 100,000 Australians each month as the turn-to independent resource for property market insights and information, the brand supports the mantra of "for investors", by investors’, drawing on the unique position that Phillip and Smart Property Investment share, warts and all, its own journey through property.

The Smart Property Investment Show, part of the Smart Property Investment Podcast Network, is one of Australia’s most popular podcasts, forming the keystone of an integrated digital platform delivering daily property updates, live broadcasting, insights, opinion and data to property investors across the nation.

Underpinned by a content team universally recognised for their knowledge of the sector and approach for clear and concise communication, Smart Property Investment has become a central part of Australia’s property community.

About Momentum Media

Momentum Media is a leading media and market intelligence company, and the business behind Smart Property Investment, REB and RPM.

Guided by a strong sense of purpose to support our communities, Momentum Media has forged its place as one of Australia’s most influential media and professional development businesses.

We have been equipping Australia’s corporate, investor and SME sectors with market and business intelligence for over a decade.

Across an integrated business supported by digital, events, broadcast, research, print and social platforms, we are guided by the purpose: Be Better informed.

This passion for informing, educating and inspiring drives us to build more engaged communities, delivering greater leadership to the markets we connect to and forging closer relationships with our audiences.

Being at the forefront of media innovation, backed by a pioneering spirit, has been central to Momentum Media’s growth.

We’re an evolving, forward-thinking business based on a purpose that supports corporate Australia and the markets critical to our nation’s economic prosperity and security. We’re also focused on delivering exceptional value to our commercial partners.

We adapt on a daily basis to rapidly changing market places; we’re a fluid media business, unanchored to any particular technology, channel or tone of communication.

With a reach spanning nearly 2 million professionals, high-net-worth individuals and SME business owners, we’re connected to the rapidly changing preferences and attitudes of our communities – and we’re making a positive contribution for our communities to thrive.

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