Perth property market into its upswing: WBP

The Perth property market has turned the corner and is now well into its upswing, according to property clock estimates from property valuers and investment advisors WBP Property Group.

WBP places Perth houses at seven o’clock on the property clock and its unit market further into an upswing at eight o’clock.

• At 12 o’clock the market is at its peak (demand exceeds supply)
• At 3 o’clock the downswing has set in (an evenly supplied market)
• By 6 o’clock it has bottomed out (an oversupplied market).
• At 9 o’clock the market is rebounding (supply tightening)

In its commentary on the Perth detaching housing market, WBP says supply has decreased and there has been a "significant increase in buyer activity in the sub-$500,000 market".

“Yields are continuing to rise as rental levels increase, which is resulting investors come back into the market.

“With supply issues now coming into effect and housing shortage becoming more evident, it is considered the cycle will continue for the medium term,” says WBP.

Taking a look at the Perth unit market, WBP says strong rental demand and the increase in the median rental has resulted in higher yields.

“Investors that are looking for even to positively geared properties are active in the sector,” says WBP.

According to October data from RP Data-Rismark released yesterday, Perth was the strongest performing market over the month, with dwelling values up 0.4% over the month and 3.5% year-on-year to a median of $460,000.

The Perth median house price is up 3.8% year-on-year to October to a median of $475,000, while unit prices are 3.5% to a median of $397,500.

RP Data puts Perth yields at 4.5% for houses and 4.9% for units.

According to RP Data senior research analyst Cameron Kusher the Perth housing market is just starting to turn around after more than five years of decline.

"Perth prices are still 7% below their peak," he says.