Leasing activity up 46 per cent in January

There were 5,197 rental properties leased in Perth during January, an increase of 46 per cent compared to December.

REIWA Deputy President Lisa Joyce said the Perth rental market had started 2019 off strong, recording improvements to the median unit rent price, listings volumes and leasing activity.

“It’s pleasing to see more confirmation of a recovery in the January findings. Leasing volumes recorded the most notable improvement, enjoying a welcome rebound in tenant activity during the month – a trend we commonly observe this time of year,” Ms Joyce said.

reiwa.com data shows 119 suburbs saw an increase in leasing activity in January, with Claremont, Mosman Park, East Fremantle, Westminster and Nedlands the biggest improvers.

“Other suburbs to perform well were Mount Lawley, Ballajura, Forrestfield, Joondana and Yanchep,” Ms Joyce said.

Perth’s overall median rent continued to hold at $350 per week in January, however reiwa.com data shows the unit rent increased $5 to $330 per week during the month and is up $10 per week compared to January 2018.

The median house rent was unchanged at $360 per week, but had increased $10 per week on an annual basis.

“Although Perth’s overall median rent remained stable, a closer look at the data shows 58 suburbs saw their median rent increase, with Bullsbrook, Bull Creek, Attadale, Applecross and Greenfields the top performers,” Ms Joyce said.

Listings for rent continued to decline, reducing to 6,732 by the end of January.

“Stock levels are two per cent lower than at the end of December and 27 per cent lower than they were last January,” Ms Joyce said.

“With fewer listings and increased activity levels, competition amongst Perth tenants is rapidly increasing. If the rental market continues on its current upward trajectory, median rents should start to rise in the coming months, which will help entice investors back to the market.”

Perth residential sales market

Perth’s median house price declined one per cent to $505,000 in January.

“On an annual basis, prices are quite stable, with the median house price only 0.4 per cent lower than it was in January 2018,” Ms Joyce said. CoreLogic’s findings for January supported the reiwa.com monthly data, showing Perth house values had declined 1.1 per cent during the month.

Although Perth’s overall median house price declined in January, reiwa.com data shows 10 suburbs recorded an increase.

“Landsdale, Dianella, Canning Vale, Heathridge, Baldivis, Scarborough, Lesmurdie, Ellenbrook, Butler and Palmyra all saw their median house price increase during January,” Ms Joyce said.

There was more buyer activity in January, with house sales increasing 6.4 per cent to 1,374 during the month, while listings for sale declined 3.2 per cent.

“Perth remains very favourable for buyers and investors, however I would advise those who are thinking about purchasing their first home, trading up or investing, to act soon and take advantage of current conditions before the market starts to recover and prices inevitably rise,” Ms Joyce said.

View more WA market data.

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