Signs of stability in Perth’s challenging rental market

Leasing activity continues to increase across the Perth metro area, with the latest data showing that activity in the three months to October lifted four per cent on the three months to September.

REIWA President Hayden Groves said all sub-regions in the metropolitan area experienced increases in activity, with the South East and Central sub-regions the stand out performers, lifting seven and five per cent respectively over the three month period.

“Perth’s rental market has certainly presented its challenges in recent times, however it’s pleasing to see that leasing activity is healthy across the metro area. Tenants clearly recognise that there is a good opportunity in the current market to secure themselves a new lease at a more affordable price,” Mr Groves said.

Listings for rent fell in the three months to October, pulling back two per cent on the three months to September, while the average number of days it took to lease a rental was unchanged at 53 days and the vacancy rate for October was reported at 6.9 per cent.

“Although listings remain at elevated levels, we are seeing signs that stock volumes have begun to stabilise with the rate of increase slowing in recent months. There was also little change to Perth’s overall median rent price in the three months to October, with the price adjusting back slightly to $365 per week.

“While the Perth rental market clearly still presents some difficulties for investors, it’s important to remember that although rents have fallen so too have interest rates with many investors able to ride out the downturn as a result. Perth investors are well advised to heed the advice of their property managers to help ensure their rental appeals to tenants in what is a competitive market,” Mr Groves said.

Central sub-region ↑ 5% ↓ 1% $380 (↓$10)
North East sub-region ↑ 2% ↓ 1% $350 (↓$10)
North West sub-region ↑ 4% ↓ 3% $370 (↓$5)
South East sub-region ↑ 7% ↓ 5% $340 (- $0)
South West sub-region ↑ 4% ↓ 4% $350 (- $0)
Perth metro region ↑ 4% ↓ 2% $365 (↓$5)

(Data in table is for three months to October 2016 vs three months to September 2016)

Article by: REIWA


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