Perth property market has ‘higher risk-rating’ in five of seven indicators: Herron Todd White

The property market for houses in Perth has been given a higher risk status in five of a total seven points of measurement from Herron Todd White.

Of the seven points of measurement, the two remaining stable include:

New properties are ‘almost never’ sold at prices exceeding their potential resale value.

The ‘rental vacancy trend’, which, while not exactly for investors, remains at an ‘increasing’ level.

Here are the five indicators that have been upgraded to higher risk status:

• Rental vacancy situation - Oversupply of available property relative to demand
  
  
• Demand for new houses - Soft
  
  
• Trend in new house construction - Steady
  
  
• Volume of House Sales - Declining
  
  
• Stage of Property Cycle - Declining market