Perth renters feeling the squeeze
If ever there was a sure sign the Perth market is out of the doldrums, this is it. Figures from the Real Estate Institute of WA (REIWA) show that Perth tenants are feeling the pinch and it doesn’t look to be easing anytime soon.
Perth rents continue to climb to new heights reaching a median of $440 per week in July, according to (REIWA). The increase in July is the same as the total increase over the three months prior. Figures from RP Data reiterate the strength of Perth’s rental market, quoting rents to have risen by 13.7% since January, two-and-a-half times the increase in Darwin where the second biggest rise occurred.
The increase in rents is a sure sign of a recovery in the Perth market and has been driven by a tight vacancy rate of 1.9%, a result of strong population growth and limited housing stock. The number of rental properties on the market has dipped to around 2,440 properties, which is around 1300 fewer than the same time last year.
“As the number of rental properties diminish, rents are being pushed up. It’s a classic case of supply and demand being driven by population growth and weak investor activity,” commented REIWA president David Airey.
With this kind of pressure it is no surprise that the vacancy rate did not ease during the winter months as it typically does, nor does it look to be easing anytime soon.
“I can’t see this rental situation changing in the short term, particularly given that the market tends to pick up in spring. The bottom line is that our population growth is higher than the rest of the country and everyone needs somewhere to live.
“We may also see investors return to the Perth market in greater numbers now that the rental yield has improved, house prices have stabilised, interest rates are steady and demand for accommodation is likely to continue for some time,” Mr Airey said.