By Damian Morris – REIWA President htpps://reiwa.com.au/
The Perth rental sector is leading the WA property market’s recovery, with REIWA September quarter data showing leasing activity is up, median rents are stable, stock levels have reduced, average leasing times are quicker and the vacancy rates have plummeted to its lowest level in more than four years.
The quarter saw Perth’s median rent remain stable at $350 a week for the sixth straight quarter – the longest stretch of stable rents Perth has experienced since REIWA started capturing data in 2001.
In addition, when we isolate the number of leased properties to just houses (excluding units), Perth’s median house rent actually increased $10 to $360 per week during the quarter which is good news for landlords.
Although overall median rent was stable, there were 105 suburbs across the metro area that experienced an increase in median rent during the September quarter. The five best performers were Kallaroo (up 39.5% to $530pw), City Beach (up 25.9% to $850pw), Gwelup (up 24.5% to $623pw), Cottesloe (up23.5% to $605pw) and Alexander Heights (up 21.9% to $390pw).
We also saw a notable improvement in leasing activity during the quarter, with 13,234 properties leased – a 5.2% increase on the June 2018 quarter.
The five suburbs with the highest volume of properties leased were Perth (346), East Perth (343), Scarborough (319), Baldivis (243) and Maylands (235).
Rental stock in Perth continues to ease, with listings for rent declining 11.9% during the quarter and25.1% compared to last year’s September quarter. This sharp decline can be attributed to leasing activity improving and new dwelling commencements slowing, which has put downward pressure on listing volumes.
Landlords found it quicker to find a tenant during the September quarter, with the average number of days it took to lease their rental reducing to 46 days. This figure is one day faster than the June 2018 quarter and eight days faster than last year’s September quarter.
Finally, Perth’s vacancy rate declined to 3.9% during the quarter – the lowest level Perth has experienced since the March 2014 quarter and below the 10 year average. After enduring a very challenging few years, the results of the September 2018 quarter are very encouraging and should provide landlords and investors with a lot of confidence moving forward.
We appear to be moving towards parity in the Perth rental market. Investors have been inactive in the last few years during the rental downturn, but likely to return to buying now that rental conditions are improving and interest rates remain low.