Expats, workers put pressure on house prices as Floreat property is flipped for $70k in three months
A property in Perth is defying COVID and the city’s property downturn to earn its former owner some seriously handy cash.
The relatively modest Floreat house, built in 1956, has jumped almost $70,000 in value in only three months, having sold in May for $1.163 million.
The three bedroom, two bathroom home has just re-sold for $1.23 million.
Real estate agents say returning ex-pats and east coast workers are putting price pressure on pockets of our city.
Acton North agent Robbie Milligan told The West Australian Floreat was a favoured destination for new and returning workers, with the $70k flip coming off the back of a shortage of stock and rental properties in the area, as well as a lack of new construction.
As revealed on Friday, Perth’s residential rental vacancy rate is at a 12-year low, and the shortage of stock is creating strong competition among tenants, particularly for houses.
THE WEST EXCLUSIVE: RETURNING EXPATS, EAST COAST WORKERS PUT PRESSURE ON HOUSE PRICES IN SOUGHT-AFTER PERTH SUBURBS
Reiwa data places the vacancy rate at 1.6 per cent, the lowest level since March 2008, with the number of properties for rent at the end of July 50 per cent lower than the same time last year.
“It’s very buoyant, with not much property around and lots of tenants looking for properties,” president Damian Collins said.
“We’re finding that where properties are vacant, they’ve got substantial demand, with 40-50 people booked to come through home opens.”
Meanwhile a lack of supply and high demand have seen Kallaroo record the strongest price growth across Perth.
While prices saw little upward movement across most of the metropolitan area, the coastal suburb’s median house price rose 15.4 per cent to $750,000 in the 12 months to June 2020.