Busy holiday period a revelation about the real estate industry
If there is one thing we have had emphasised to us of late, it is that real estate activity does not stop for holiday periods.
When people need to rent or buy a property, they take advantage of holiday periods.
To give you an idea, unlike many other agencies, we manned our office with a skeleton crew during the festive period between Christmas and New Year.
It resulted in the lease of six properties and the sale of two to be well worth the effort.
Having the office manned also resulted in an exceptionally low level of rental arrears and we fielded a considerable number of rental and buyer enquiries which may well culminate in several more rental take-ups and sales in the near future.
Furthermore, our rental property owners are happy to have had their rents paid on time rather than being delayed because of the office being closed, and their property maintenance was arranged as needed.
As a result of the activity in this period, you can guess what we have as a New Year’s resolution.
Next festive season the number of staff working in that period will be increased because we think that with a bigger crew, we can do even better!
Another thing interesting to note is that the average number of days that a rental property is vacant in Perth is now down to 24.7days.
We’re currently averaging 19.8 days which is pleasing because it indicates to us that the systems we have introduced are working better than what the traditional real estate agency system performs at.
Two aspects that should please our investor clients is that the median weekly rent for properties in Perth has increased – for houses $380/ week – a rise of 5.6% - for units/apartments $340/week – a rise of 3.0%.
According to the West Australian Real Estate Institute as at January 5 there were 5,767 properties available to lease across Perth. This figure is 21% less than a year ago.
With respect to properties for sale there were 12,257 properties on the market – 12% less than 4 weeks ago and 24% less than a year ago.
So it is undoubtedly reasonable to suggest that the Perth property market seems to be in recovery mode after a somewhat dour 2019.
2019 saw the median price of properties increase by 0.4% to $453,393.
According to Core Logic’s head of research, Tim Lawless, Perth will see a much more positive 2020 with the median price increasing by as much as 6%.
If this occurs it will add $27,204 to the median value – good reason for those who are contemplating buying property this year to act before the values start to increase.
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