Powered by MOMENTUM MEDIA
realestatebusiness logo
Subscribe to our newsletter SIGN UP

Slight slowdown in Perth rental market 

10 January 2017 Reporter

In line with seasonal trends, leasing activity in Perth’s rental market moderated slightly in December, dropping back 2 per cent over the month.

In line with seasonal trends, leasing activity in Perth’s rental market moderated slightly in December, dropping back 2 per cent over the month.

However, when compared to December 2015, activity escalated by 27 per cent.

REIWA President Hayden Groves says a slowdown in leasing activity across the month is expected as people prepare for the holidays.

“So a 2 per cent drop isn’t a concern,” he said.

Mr Groves also said the hike in the number of properties leased on an annual basis is “very pleasing”, especially since there has been a significant increase compared to December 2015.

“Despite listings for rent remaining above the long-term average, tenants are still very active in the market and recognise they have good choice to secure a home at a competitive price,”

Perth’s median house price increased by nearly 2 per cent in the three months to December 2016, but listings in the city dropped 11 per cent during the same period.

Mr Groves said it is not unusual for listing volumes to drop off in December as the market tends to be quieter over the festive period.

“More significantly though, listings in December 2016 were 3 per cent lower than in December 2015 which is a good indication that we’ve seen supply peak,” Mr Groves said.

He pointed to reiwa.com data which showed the median house price had lifted 1.9 per cent to $535,000 over the three-month period.

“This is the second month in a row that we’ve seen an increase in the median house price, which is a welcome trend and suggests that the trade-up sector of the market is recovering.

“Since the second half of 2016, we’ve seen prices across the metro area start to lift on a monthly basis.”

Mr Groves said buyers waiting for the bottom of the market would be wise to make a decision soon.

“The benefit of buying now is that there is currently less competition from other buyers, so you’re more likely to find a home or investment property that genuinely meets your needs.”

Another positive sign for the Perth rental market is that the median house and unit prices remained steady over the three months to December 2016, holding at $380 and $340 per week respectively.

Slight slowdown in Perth rental market 
lawyersweekly logo
FROM THE WEB
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

Network or independent?

Independent
Network, the bigger the better
Network, but midsized
Niche group, small and agile
Do you have an industry update?
REAL ESTATE BUSINESS NEWSLETTER
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.