The residential rental vacancy rate in Perth, capital city of Western Australia, has remained steady despite changes in the larger residential property market, and is now just under four percent.The median weekly rent for the residential property in the city and Perth metropolitan area remained steady at $450 for the last quarter of 2014, although analysts note that this is still a decline of $20 per week compared to the same period in 2013.
“We’ve seen a lot of new pressures on the rental market in Perth over the last year, not the least of which is a decrease in the rate of population growth,” said Designer Homes Perth director Kris Aird, speaking from a building site in Minim Cove. “Perth is still experiencing growth from the arrival of new immigrants, but it is at a slower rate than in the past. This has combined with the downturn of jobs in the mining and construction sector to create an impact on rental listings.”
“The remarkable part may be how well rental property has held up under the circumstances. Even at a lower rate of growth and return than in their hey-day in Perth, they have retained their popularity with investors and builders because they remain a safe haven in a troubled financial market.”
According to data released by the Real Estate Industry of WA, 6,000 rental properties are currently available, which is above the recent historical averages, and while the median rent has remained steady individual areas have been much more varied in their performance. There remains a large gap between the popular western suburbs median average of $550 per week, and the most affordable area of Armadale with an overall median of $380 per week. However it’s worth noting that of the two, the western suburbs rental median has declined by around $70 per week while inexpensive Armadale has not lost any value.
At the same time, areas such as Kwinana, Vincent and Rockingham saw median rental prices increase Median house rents increase during the same period, creating the mixture of rental price growth and decline that has created an image of price stability overall.
“There is a real bright side in this for buyers and tenants, as all indications are for greater choice and improved affordability in 2015,” said Mr. Aird. “These changes do mean sellers and landlords are going to have to set their expectations more realistically, but competition within the market and the completion of new developments should provide good opportunities for first time buyers, as well as people looking to upgrade their house or downsize due to retirement. It also creates a good time for owners to enhance their existing properties through renovations or extensions in order to maintain and increase value.”
Release ID: 72114