PERTH’S median rent rose for the first time in over three years, up from $350 per week to $360 in February according to Reiwa.
President Damian Collins said median rents had remained stable for the longest period since reiwa.com first started capturing rental data in 2001.
“While the overall increase in median rent was up by $10 per week, this is a significant step in the WA property market and one we have been waiting a long time for,” he said.
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READ NOW“This increase can be attributed to Perth’s vacancy rate dropping to 2.2 per cent, which is the lowest it has been since March 2013, coupled with listings for rent on reiwa.com being down compared to January.”
Stirling, Shenton Park, Ocean Reef, Thornlie and Bertram led the way for median rent price growth last month.
Leasing activity fell 9 per cent compared to January and the average number of days it took lease a property, improved one day to 28 days.
More rent price increases were possible.
“As we head into March, which is usually one of the busiest months of the year for the rental market, it will be interesting to see how the market performs and if rents continue to rise, which is possible given the low vacancy rate,” Mr Collins said.
The sales market also saw improvement in February with sales activity up 5 percent on the improvement already recorded in January.
Mr Collins said it was pleasing to see the sales market showing a strong, gradual improvement over the last four months.
“With sales activity on the rise, listings for sale were stable in February and it took on average only 47 days to sell, which shows that current stock is being absorbed at a faster rate,” he said.
“CoreLogic’s home value index increased in Perth by 0.3 per cent, which can be attributed to the increase in sales activity and stabilised listings.
“If things continue on this upwards trajectory, median prices should continue to increase – which hasn’t happened since June 2018.”
Reiwa.com data showed the median sale price in 65 per cent of suburbs increased or remained unchanged last month, with Kallaroo showing the biggest increase of 8.1 per cent to $735,000 and Mt Pleasant, Wannanup, Mindarie and Woodvale rounding out the top five.
With the exception of Wannanup they all had a median sale price higher than the Perth median of $480,000.
“After a long stretch of declines in the WA property market, it is great news that we are starting to see gradual improvements,: Mr Collins said.
“This could be the impact from various government initiatives and the lowered interest rates by the Reserve Bank of Australia put in place last year.
“With the RBA announcing recently that interest rates will be again lowered, taking the cash rate to 0.50 percent, and many banks announcing they will pass this onto lenders, this should help continue to improve the sales market and WA’s economy.”