Perth rental market continues to feel the pinch

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While Perth’s overall rental market continues to feel the pinch, pockets of the city are showing some signs of positivity according to the Real Estate Institute of Western Australia (REIWA).
Analysis of Perth’s rental market over the December quarter by REIWA suggests there are sub-regions in the city where the market is showing resiliency or moving in a positive direction.
“While the overall rental market experienced some softening in the December quarter, when we drill down further we see there were a number of pockets where stable or positive rental yields were felt,” REIWA president Hayden Groves said. 
Groves points to the performance of suburbs such as Wanneroo South, where the median rent increased by $15 to $430 over the quarter.
“This is $30 more than Perth’s overall median rent, and represents a 3.6 per cent lift on the September quarter median,” Groves said.
“The median rent in the Fremantle sub-region [also] lifted by $15 over the quarter, up to $485 per week from $470 in the September quarter – which is an increase of 3.2 per cent,” he said.
Rents remained stable in five other sub-regions, with the city’s overall median rent sitting at $400 over the three months.
“When we break this down into house and unit rent prices, our latest data shows house rents dipped $5 to $405 per week in the three months to 31 December, while units came in at $380 per week, down from $395 in the September quarter,” Groves said.
The December quarter saw 15,779 rental properties leased across the Perth metropolitan area; with 42% of those being priced from $301 - $400 per week.
Groves said the take up of properties in that price range pointed to people looking to take advantage of Perth’s moderating rental market.
“Renting has become more affordable in Perth in recent times, which has presented tenants with a good opportunity to secure a lease at a competitive price.
“We’ve also seen a bigger increase in the uptake of one to two bedroom rentals in the Perth metro area, which suggests that tenants living in share houses recognise they are in a position to improve their living arrangement and secure a lease of their own.”
According to the REIWA figures, rental properties are taking on average 46 days to find a tenant, which is unchanged from the December quarter.
On average, houses are being listed for 44 days before being occupied, while units are taking an average of 50 days.

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