MOMENTUM is slowly building in the Perth’s rental market according to Reiwa, with the vacancy rate falling to 2.5 per cent in the three months to September 2019, down from 2.9 per cent in the previous quarter.
Other improvement were seen with 172 suburbs recording an increase in leasing activity and the median weekly rent rising in 110 suburbs.
Reiwa deputy president Lisa Joyce said Perth’s rental market appeared to be building on the momentum of the latter half of 2019.
“This is very encouraging, not just for the rental market, but also for the overall property market as historically, the sales market follows the rental market during a recovery,” she said.
While 110 suburbs recorded an increase in median rent price, 117 suburbs saw no change with reiwa.com data showing Perth’s overall median rent remained unchanged at $350 per week.
“With only seven more suburbs separating the two, we can see how close we are to potentially seeing an increase in Perth’s overall median rent price, which will be the first time since April 2017,” Ms Joyce said.
“From a suburb level, Madeley had the biggest growth for the quarter with an increase of $25 per week, Munster closely followed with a $23 increase, then Cannington, Carlisle and Carramar which all saw an increase of $20 per week.”
There were 13,356 rental properties leased in Perth during the September quarter, which was 12 per cent more compared to the previous three month period.
“All six Perth sub-regions saw an improvement in leasing volumes, with the biggest improvements occurring in Mandurah (up 21 per cent), Inner region (up 18 per cent) and South West region (up 16 per cent),” Ms Joyce said.
“At a suburb level, Riverton, Dudley Park, Success, Como and Mullaloo saw the biggest growth in leasing activity levels over the quarter.”
The number of properties for rent declined 17 per cent, with 6169 listings recorded at the end of the quarter.
“From an annual perspective listings are down 19 per cent and on average are taking six days less to lease,” Ms Joyce said.
“With the vacancy rate at 2.5 per cent and listings continuing to lower, we could see more pressure put on the rental market which will lead to an increase in Perth’s overall median rent price.
“With the Perth rental market finally starting to re-balance, now is a good time for tenants to secure their new rental or look into a longer-term lease before rents potentially rise.”