Ensure you never miss an issue of the
real estate business bulletin
Rents continue to rise in Perth

Rents continue to rise in Perth

by Reporter 0 comments

Staff Reporter

Median rents rose by up to $20 across metropolitan Perth in the three months to August, pushed higher by tight vacancy rates, according to data from the Real Estate Institute of Western Australia (REIWA).

Its latest data for the three months to August, indicates that median house rents rose by $10 to $450 per week, while units, apartments and villas rose by $20 to $430 per week.

REIWA president David Airey, said the latest rise had followed a $10 dollar increase in the March quarter and a $10 increase in the June quarter.

“We have also seen the vacancy rate for available properties tighten in the three months to August, with REIWA recording a measure of just 1.8 per cent across the city,” Mr Airey said.

The long-term equilibrium for Perth’s rental vacancy rate is three per cent, according to REIWA.

Mr Airey said the pressure in the rental system was coming from a combination of strong population growth, first home buyer activity and weak investor interest.

“Our state has the highest rate of population growth in the country and this is placing increasing demand on the rental system,” he said.

“The number of properties listed for rent has fallen by 15 per cent from almost 2,700 properties in early July to 2,300 by the end of August.

“In addition to this, first home buyer activity is strong and this means that a lot of the stock for sale at the more affordable end of the price range is being snapped up by young buyers rather than investors, who remain scarce in the current market,” Mr Airey said.

Mr Airey said that investors own around half of all multi-residential dwellings, but that current turnover in that sector of the market was weak.

“While sales volumes for houses in Perth have largely returned to normal, sales for units are about 30 per cent below where they might normally be.

“Investors are not replenishing the housing system with much needed rental stock as dwellings are being removed from the market by owner-occupiers,” Mr Airey said. 

Mr Airey said that WA’s increasing population and decreasing stock of listings for both sales and rentals would continue to put price pressure on the housing system until supply could better meet demand.

le>.b-autolinks{text-decoration:underline}.b-autolinkshadowbox { display: inline; position: relative; cursor: pointer; color: #428bca;} .b-autolinkshadowbox:hover > span { display: block !important; } .b-autolinkshadowbox__links { white-space: nowrap; z-index: 999; display: none; left: 0; border: 1px solid #bfbfbf; border-radius: 5px; font-size: 12px; top: 12px;color: #000; padding: 10px; position: absolute; background-color: #FFF; box-shadow: 0px 0px 20px 1px #bfbfbf; } .b-autolinkshadowbox__links > a { display: block; padding: 3px 0; }
Rents continue to rise in Perth
lawyersweekly logo
promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

The REB Top 100 Agents ranking is the foremost ranking of agents in Australia. It has set the bar for excellence in Australian real estate. To be ranked as an REB Top 100 Agent is the standard real estate professionals strive for. See the full 2018 ranking here!

featured podcast

featured podcast
The difference between an average agent and one who dominates

McGrath Crows Nest’s Peter Chauncy is number 10 in this year’s REB Top 100 Agents ranking. Peter, however, is more likely not surprised ...

View all podcasts

Would you consider working for Purplebricks or a similar 'DIY' model?

Yes (7.2%)
No (80.9%)
Perhaps - make me an offer (12%)

Total votes: 209
The voting for this poll has ended on: July 13, 2018
Do you have an industry update?