Leasing up, house prices stable in January: REIWA

Stock image.
Stock image.

LEASING activity in Perth rose significantly in January.

According to REIWA there were 5197 rental properties leased during the month, an increase of 46 per cent compared to December.

Deputy president Lisa Joyce said the Perth rental market recorded a strong start to 2019, with improvements in the median unit rent price, listings volumes and leasing activity.

“Leasing volumes recorded the most notable improvement, enjoying a welcome rebound in tenant activity during the month – a trend we commonly observe this time of year,” she said.

Reiwa.com data showed 119 suburbs saw an increase in leasing activity in January, with Claremont, Mosman Park, East Fremantle, Westminster and Nedlands the biggest improvers.

Other suburbs to perform well were Mt Lawley, Ballajura, Forrestfield, Joondanna and Yanchep.

Perth’s overall median rent continued to hold at $350 per week, however the median unit rent increased $5 to $330 per week and was $10 per week higher than the same time last year.

The median house rent was unchanged at $360 per week, but increased $10 per week on an annual basis.

“Although Perth’s overall median rent remained stable, a closer look at the data shows 58 suburbs saw their median rent increase, with Bullsbrook, Bull Creek, Attadale, Applecross and Greenfields the top performers,” Ms Joyce said.

Listings for rent continued to decline, decreasing to 6732 by the end of January.

“Stock levels are 2 per cent lower than at the end of December and 27 per cent lower than they were last January,” Ms Joyce said.

“With fewer listings and increased activity levels, competition among Perth tenants is rapidly increasing.”

Ms Joyce said the improving rental conditions could see rents start to rise, enticing investors back to the market.

While there was strong activity in the rental market, the sales market was more stable.

Perth’s median house price declined 1 per cent to $505,000 in January.

“On an annual basis, prices are quite stable, with the median house price only 0.4 per cent lower than it was in January 2018,” Ms Joyce said.

Although the overall median house price declined, reiwa.com data showed 10 suburbs recorded an increase, including Landsdale, Dianella, Canning Vale, Heathridge, Baldivis, Scarborough, Lesmurdie, Ellenbrook, Butler and Palmyra.

Buyers activity rose during the month with house sales increasing 6.4 per cent to 1374 and listings for sale down 3.2 per cent.

Ms Joyce said market conditions remained very favourable for buyers and investors.