Perth property market stable in December, but 2019 could see rents increase

Stock image.
Stock image.

WHILE the Perth market ended the year with stable house prices and rents, tenants could face rent increases in 2019, according to REIWA.

Reiwa.com data showed the number of properties for rent fell 6 per cent to 6,865 in December 2018 and was 27 per cent lower than 12 months ago.

As a result the vacancy rate has declined further.

“This significant reduction in listings, combined with stable rent prices and healthy leasing volumes, has pushed the Perth vacancy rate to 2.9 per cent, the lowest level since March 2013,” president Damian Collins said.

Perth’s overall median rent price remained at $350 per week in December.

“While the overall median was stable, when we isolate rent prices to just houses, Perth’s median house rent increased $8 to $360 per week, which is very encouraging,” Mr Collins said.

“Traditionally the first few months of the year are a busy time for leasing activity.

“If the rental market remains on its current upward trajectory, we should see rent prices increase throughout the year, which should entice investors back into the market.”

The sales market remained stable in December, with the Greater Perth median house price, which includes Mandurah, holding steady at $510,000.

It was unchanged from November 2018, but up 2.6 per cent on September 2018.

Mr Collins said median prices provided a good indication of market trends, but it was important to take a closer look at how individual sectors were holding up.

“For example, although overall sales are down in Greater Perth, reiwa.com data shows activity in the $800,000-plus price range has strengthened,” he said.

The number of properties for sale declined 9 per cent in December.

Trigg, Hilbert, Gwelup, Parkwood and South Fremantle recorded the biggest reduction in listing stock (percentage wise) during the month.

“After observing a surge in listing stock during spring, listing volumes were more subdued in December, which is very typical as vendors are generally less inclined to try and sell during the holiday season,” Mr Collins said.