Perth rental market improving
21 Sep 2018
The Perth rental market continues to show signs of improvement, with the vacancy rate falling to 4.5 per cent in August – the lowest since April 2015, according to the Real Estate Institute of Western Australia (REIWA).
Carmel Gardiner of Abel McGrath said it’s a much healthier position for everyone, with the vacancy rate at that level.
“There is a lot more interest in the rental market now,” Ms Gardiner told WILLIAMS MEDIA.
“Prices are still good for renters, but they are starting to go up gradually for landlords, who are an important part of the housing market.”
Simon McGrath of Abel McGrath told WILLIAMS MEDIA he has also seen increased activity.
Abel McGrath leased 30 properties last month, in comparison to 20 in July.
REIWA President Hayden Groves said the Perth rental market had shown positive signs across all key indicators.
“What we are seeing is a steady yet healthy improvement in tenant activity,” Mr Groves said.
“Steady rents, easing supply as listings for rent continue to fall and stronger demand with more leasing activity all point to the rental market leading Perth’s property market recovery.”
Leasing activity was up 17 per cent in August, with 4,805 dwellings leased during the month.
Mr Groves said reiwa.com data showed Leederville, Glendalough and Secret Harbour experienced the biggest growth in leasing activity during August.
“Leederville had more than double the amount of properties leased from July to August, with the volumes increasing by an impressive 183 per cent,” Mr Groves said.
Ms Gardiner said Leederville is a good suburb to rent in because it is close to city and has great infrastructure, and transport.
“Areas like Doubleview are also doing very well, we rent very quickly there.
“Most of the western suburbs go quickly as they have really lovely homes that have a market for being rented well.
“The lower end of the market is still struggling as there is quite a few rental properties available, especially in areas like Wembley.”
Mr Gardiner said suburbs like Wembley mostly have smaller rental properties including apartments.
Mr Groves said “As we move into these warmer spring months, the property market should see an overall uplift in activity, and historically the sales market follows the rental market during a recovery.”
Perth’s median rent continues to hold for the 17th month straight at $350 per week, with no changes recorded since April 2017, according to the REIWA.
Ms Gardiner said prices are improving slightly, but it depends on the area and how many properties are available for rent.
“There are slight increases in good areas, that people are seeking to live in.”
“The market is certainly looking a lot more positive than it was even six months ago.
“As we head into spring and summer I expect things will improve.
“I think there is a positive outlook for the rental market and in order for housing affordability to improve you need to have a good rental market as well.”