Investors looking to get into the Sydney market at the bottom of its cycle may have missed out, according to Christopher.
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Perth and Brisbane heading into property market upswing: Louis Christopher
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The capital cities of Australia’s resource states are leading the property market recovery, according SQM Research managing director Louis Christopher.
Christopher places Perth houses and units at 6.30 on the property clock, indicating the market has just bottomed out and heading into an upswing, and Brisbane houses and units at six o’clock, indicating the market has bottomed out.
His assessment of the Perth market is based on falling listings and a tightening rental market.
Perth house and unit prices have also stopped falling, says Christopher.
In its September stock-on-market report, SQM found that Perth online residential listings declined by 3% to 17,517. Year-on-year they are down 14.6%, the biggest decline of the mainland capital cities (excluding the much smaller Darwin market).
SQM also found that the Perth vacancy rate tightened from an already very low 0.7% in July to 0.6% in August, with just 1,177 properties available for rent (compard with more than 2,600 in Adelaide and nearly 12,000 in Melbourne). Apart from Darwin (0.5%), Perth has the tightest rental market in Australia.
This tightening vacancy rate resulted in median house rents increasing by $10 to $450 per week over the August quarter, with weekly rents for units, apartments and villas rising by $20 to $430 per week, according to the latest REIWA data.
Christopher says Brisbane has bottomed out due to falling listings volumes and house prices no longer falling.
According to SQM Research, Brisbane online residential listings are down 8% year-on-year to September, with the vacancy rate at a tight 1.5%.