Rental returns on the increase
Low interest rates, strong demand by tenants and higher rents mean that rental yields are now more attractive to investors.
The median rent for houses has risen by $10 to $470 per week in the 3 months to January, according to the latest rental data from the Real Estate Institute of Western Australia.
Median rents for units, apartments, villas and townhouses however were unchanged at $420 per week, meaning Perth’s overall median rent remains stable at $450 per week.
The data also shows that there was a 13 per cent climb in the number of new leases from the December quarter, though the vacancy rate remains stable at around 1.9 per cent.
REIWA President David Airey says the large number of people leaving the rental system to buy their first home might be a contributing factor.
“It may also be due to the return of some investors who are adding stock to the rental supply,” Mr Airey said.
Mr Airey said that low interest rates and the strong demand by tenants meant that rental yields were now more attractive to investors who had been absent from the market in recent years.