THE Perth rental market enjoyed a strong rebound in May, following a more subdued April, according to Reiwa.
Tenant activity increased 13 per cent, with 4316 properties leased during the month.
“In May, the suburbs that saw the biggest spike in leasing activity were Warnbro, East Victoria Park, Balga, Quinns Rock and Cloverdale,” Reiwa deputy president Lisa Joyce said.
“Other suburbs to perform well were Yokine, Bertram, Halls Head, Hillarys and Golden Bay.”
Rent prices remained stable, with the overall median rent sitting at $350 per week.
“House and unit rents also recorded no change, holding at $360 and $330 per week respectively throughout the month,” Ms Joyce said.
“While overall rent prices were unchanged, 26 per cent of suburbs in the Perth region saw their median rent price increase, with the biggest improvements occurring in Subiaco, Mosman Park, Warnbro, Dudley Park and Cloverdale.”
Listings for rent increased 1 per cent to 7252 properties by the end of May.
“While rental listings remain significantly lower than what they were a year ago, we have observed a gradual increase in stock levels during the last few months,” Ms Joyce said.
“It’s likely the rental market is starting to absorb some of the sales listing stock, with sellers choosing to try their hand at renting out their property instead of listing for sale.”
Residential sales market
Dwelling values in Perth declined one per cent to $436,090 in May according to CoreLogic’s latest home value index.
Ms Joyce said although overall prices declined in the Perth region, reiwa.com data showed 28 per cent of suburbs saw improvements in median house price.
“The top performers in May were Erskine, Cottesloe, Hillarys, Kingsley, Wanneroo and Ballajura, with all suburbs recording notable growth,” she said.
While overall prices were down in Perth, reiwa.com data showed sales volumes improved during May following a particularly weak April, with 43 per cent of suburbs recording an increase in activity.
“The suburbs that saw the biggest improvement in sales were Currambine, High Wycombe, Gosnells, East Victoria Park and Baldivis,” Ms Joyce said.
“There has been a lot of uncertainty surrounding the property market this year, with the Federal Election causing many buyers and investors to hold off taking any action until the results were announced.
“With the Morrison Government being returned to power and changes to national housing taxes officially off the table, this should hopefully bring much needed confidence to the market and help aid recovery.”