Perth is approximately 6,148 square kilometres and is Australia’s fourth most populous city. Perth experiences steady population growth of around 1.5% per annum and as of 2019, had a population of just over 2 million. The predominant age group in Perth is 25-34 years. Households in Perth are primarily childless couples and are likely to be repaying between $1800 – $2400 per month on mortgage repayments. In 2006, 38.1% of the homes in Perth were owner-occupied compared with 36.8% in 2011. (source: Australian Bureau of Statistics)
To sell a property in Perth via a traditional agent you can expect to pay around 2.3 – 2.7% plus GST on average. Suburbs closer to the CBD have been shown to have a lower average for commissions, on occasion falling below 2%. The more regionally located your property is, the more you can expect to pay on commission.
On top of a commission, if you sell with a traditional agent, you would also generally pay additional advertising fees which can increase your total cost significantly. For example, in a competitive suburb, the top upgrade available on realestate.com.au may be several thousand dollars.
Dwelling values in Perth, unlike other capital cities, have fallen in 2019. As of January 2020, in regards to dwelling values, we’ve seen an annual drop of 7.7% and a smaller drop of 1.4% over the past decade. The median dwelling price in Perth is sitting at $437,080, with median house values at $453,393 and median unit values at $352,154, which are lower than in previous years and lower than any capital city right now.
It’s good news for investors, with rental rates and yields as of January 2020 showing an increase; weekly rent has risen to $350 for houses and $360 for units. The gross rental yields are slowly climbing from previous years, up 4.2% for houses and 5.1% for units.
The average number of days on the market for sale properties has remained unchanged over the last year with the average as of January 2020 being 51 days, the same as 2019.
The latest property data from Corelogic, shows that Perth property held its ground quite well during the coronavirus pandemic in Australia. In fact during the height of the pandemic in April, Perth property prices during COVID-19 experienced 0.2% growth, outperforming both Melbourne and Hobart in the capital city stakes.
It showed a confident 1% growth across the first quarter of 2020 too, boasting some resilience to weaker conditions, and giving buyers and sellers confidence as the market returns to normal. Some experts are even predicting the Perth property market to experience gains of up to 15% over the next few years.
We’ve had a number of clients use our services in Perth specifically, and WA more generally. Given the market conditions in Perth now, by not paying an agent a hefty commission you give yourself more room to move on the sale price, which gives you a significant advantage. You can also know for sure that enquiries are being responded to as quickly as possible and are properly followed up. If you’re not sure how to price your property, we can provide you with a detailed breakdown of sale statistics for Perth, as well as an estimated value of your own property.
PropertyNow markets properties and supports owners to sell privately nationwide. We also maintain extended hours to account for the time difference between the eastern and western states.
Gael who sold her property in Chittering with the help of PropertyNow wrote, “Was the best way to sell. Very easy to make the ad. Took two months to sell.”
Malcolm who leased his Perth property privately thanks to PropertyNow said, “It was a really good experience and have recommended it to a friend to lease a property. Thanks.”
Please contact us if you require more recent information or advice about leasing or selling a property in Perth yourself.