Rents continue to rise in Perth
Property investors will be happy to hear that the extraordinary growth in Perth rental prices over the past year seems to be continuing.
Data from the Real Estate Institute of Western Australia (REIWA) released recently show median rents for house rose by $10 a week between May and August and $20 a week for units, apartments and villas.
REIWA president David Airey said the vacancy rate has also tightened in the three months to August, to just 1.8 per cent across the city.
Mr. Airey believes strong population growth, first home buyer activity and weak investor interest have all contributed to put immense pressure on the rental market.
“Our state has the highest rate of population growth in the country and this is placing increasing demand on the rental system,” he said.
“The number of properties listed for rent has fallen by 15 per cent from almost 2700 properties in early July to 2300 by the end of August.
“In addition to this, first home buyer activity is strong and this means that a lot of the stock for sale at the more affordable end of the price range is being snapped up by young buyers rather than investors, who remain scarce in the current market.
“Investors are not replenishing the housing system with much needed rental stock as dwellings are being removed from the market by owner-occupiers.”
“I can’t see any signs on the horizon that will reduce the demand for rentals,” he added.
“It appears Perth is a popular place to live, we’ve got an ongoing shortage of rental supply, so it’s likely that rents at the very least will remain stable but are likely to have increases.”