Rents Fall | 9 News Perth
In June 2015, Momentum Wealth Managing Director Damian Collins spoke to 9 News Perth’s Scott Cunningham about the oversupply of Perth rental properties pushing rent prices down.
Hear what he had to say in the video above and transcript below.
News Anchor: “There’s some good news for Perth renters tonight where the glut of properties is continuing to force prices down, and experts warn the pain for landlords is likely to get worse.”
Scott Cunningham (Reporter): “Right now there are more than 7,600 homes for rent in Perth, that’s 44% more than this time last year.”
Damian Collins, MD, Momentum Wealth: “It’s definitely a tenants’ market with vacancy rates up over 4.5%.”
Scott Cunningham: “Last month the medium rental price in Perth dropped $10 to $425 per week, but some areas like Belmont, Cloverdale, Kewdale and Rivervale have seen prices fall by as much as $25. Experts say there’s an over-supply and high vacancy rates and less competition among tenants.”
Damian Collins: “We’d expect it to potentially increase a little bit more throughout this year, but we always need to remember that this still means that there’s 95% of properties still leased.”
Scott Cunningham: “The easiest place to find a rental is in Perth South, Cockburn, Kwinana and Rockingham have the most homes on offer. Right now tenants have the advantage, experts say it’s important they do their research before making offer and always negotiate the price of rent.
The slump is being blamed on a down turn in the resources sector; new apartments flooding the market; and with low interest rates, more first home buyers.
Median house price remains steady at $547,000. The best-selling suburbs are Butler, Ellenbrook, Willetton, Canning Valle and Baldivis. Experts say we can expect much of the same rental relief for the next year.”
Damian Collins: “I’d expect 2015 will be fairly flat, but possibly in 2016/17 we might start to see a rise in rents again.”