Perth’s rental market has improved, with reiwa.com data for the September 2018 quarter showing positive results across all key market indicators.
REIWA President Damian Collins said leasing activity was up, median rents remained stable, stock levels had reduced, average leasing times were quicker and the vacancy rate had plummeted to its lowest level in more than four years.
“The rental sector is really leading the charge in the Perth property market recovery. The September 2018 quarter results are very encouraging and should provide landlords and investors with a lot of confidence,” Mr Collins said.
Median rent price
Perth’s overall median rent price held at $350 per week for a sixth straight quarter.
“reiwa.com data shows this is the longest period of stable rents the Perth rental market has experienced*. Prices remain affordable for tenants, but the last 18 months have provided landlords with some much needed consistency,” Mr Collins said.
“Additionally, when we isolate this quarter’s leased properties to houses (excluding units), reiwa.com analysis shows the median house rent actually increased $10 this quarter to $360 per week, which is a good sign for the overall market.”
reiwa.com analysis shows 105 suburbs across the metro area saw their median rent increase during the September 2018 quarter.
“The five best performing suburbs for overall rent price growth were Kallaroo (up 39.5 per cent to $530 per week), City Beach (up 25.9 per cent to $850 per week), Gwelup (up 24.5 per cent to $623 per week), Cottesloe (up 23.5 per cent to $605 per week) and Alexander Heights (up 21.9 per cent to $390),” Mr Collins said.
“Other top performers were Connolly, Inglewood, Ashby, Beaconsfield and Wembley.
There were 13,234 properties leased during the September 2018 quarter.
Mr Collins said leasing activity had increased 5.2 per cent compared to the June 2018 quarter.
“Tenants were a lot more active this quarter than last, with 132 suburbs across the metro area recording increases in the number of properties leased,” Mr Collins said.
reiwa.com data shows the five suburbs with the highest volume of properties leased during the quarter were Perth (346), East Perth (343), Scarborough (319), Baldivis (243) and Maylands (235).
“South Perth, Rockingham, West Perth, Rivervale and Midland also performed well,” Mr Collins said.
“Activity remains high in the rental market. Provided landlords are listening to the advice of their property manager and pricing their rental in line with market expectations, they have a very good chance of securing a tenant.”
Listings for rent
There were 7,286 properties for rent in Perth at the end of the September 2018 quarter.
“Listings for rent have improved considerably, with reiwa.com data showing stock levels are down 11.9 per cent compared to the June 2018 quarter and 25.1 per cent compared to last year’s September quarter,” Mr Collins said.
“This sharp decline can be attributed to a combination of leasing activity improving and new dwelling commencements slowing. With less new properties coming onto the market, rental stock is being absorbed at a quicker pace, which has put downward pressure on listing volumes.”
Average leasing time
It took landlords 46 days on average to find a tenant for their rental during the September 2018 quarter.
“This is one day faster than the June 2018 quarter and eight days faster than the September 2017 quarter,” Mr Collins said.
“A combination of increased tenant activity and lower listing levels has had a positive impact on average leasing times for landlords, with tenants needing to act quicker to secure a rental.”
Perth’s vacancy rate declined to 3.9 per cent during the September 2018 quarter – the lowest level Perth has experienced since the March 2014 quarter.
“With all key market indicators improving during the September quarter, Perth’s vacancy rate has now fallen below the 10 year average,” Mr Collins said.
“Slowly but surely we are moving towards parity in the Perth rental market, with improved conditions across the board meaning there is good opportunity for tenants and landlords to benefit simultaneously.”
*reiwa.com historical rental data dates back to June 2001 quarter. Median rent price trends prior to this time are not recorded.