Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

WA’s rental market poised for resurrection

By Staff Reporter
09 June 2021 | 1 minute read
WA rental market poised for resurrection

Western Australians are celebrating a significant increase in investor lending, marked by the return of investor confidence and an impending, long-awaited resurrection of the state’s rental market.

New loan commitments for investors picked up by 2.1 per cent in April, to $8.1 billion – the highest level since mid-2017 – signalling their return to the market after a prolonged dry spell which has seen a rental crisis develop in much of the country.

But WA’s capital Perth has been hit particularly hard, with CoreLogic reporting a surge in rents by 16.6 per cent for houses and 14.2 per cent for units as of end-May, on the back of a few-years-long crisis.

Advertisement
Advertisement

However, hopes are now high, with investor finance levels increasing by an impressive 164 per cent in the state, according to the Australian Bureau of Statistics, spelling an end to the state’s rental troubles.

In fact, investor lending in WA now stands at $453 million, and while it is still shy of the $1 billion a month investment lending figures, seen during the previous market booms in 2014 and 2006-07, REIWA president Damian Collins believes a positive trend has been sparked.

“The April 2021 figures are the best we have seen since December 2015 and considerably higher than this time last year,” said Mr Collins.

“Low levels of investor activity in WA are a key reason behind the state’s rental shortage. Property investors and the private rental market are essential to ensuring tenants can find appropriate housing,” he noted.

According to Mr Collins, while investors started departing WA’s property market several years ago, the COVID-induced downturn exasperated the problem.

“Now that the rental moratorium is over and the property market is firmly in recovery mode, investor confidence is starting to return,” Mr Collins said.

“As investor levels increase and more available stock comes to market, this will help provide housing to tenants and ease the rental shortage. There are also a lot of investors choosing to sell now that were unable to during the height of COVID-19. Once this wave of activity subsides, we will see more improvement,” he added.

Noting that WA is not out of the woods yet, Mr Collins couldn’t hide his optimism.

“It is encouraging to see some light at the end of the tunnel for the WA rental market,” Mr Collins said.

WA’s rental market poised for resurrection
Perth CBD skyline sunset reb
lawyersweekly logo

Tags:

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Travancore
49.78%
Timboon
49.57%
Dolphin Point
49.51%
Nyah West
49.42%
Preston Beach
49.29%
Newington
48.97%
Killcare Heights
48.89%
Wundowie
48.77%
Homebush
48.44%
Glenside
48.28%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to 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.