Positive signs are starting to emerge in the rental market with reiwa.com data showing the market held onto its first increase in median weekly rent prices since the December 2016 quarter.
REIWA President Damian Collins said there had been a significant decline in vacancy rates over the last few years, with Perth currently the most affordable capital city to rent in the country. Given the softer sales market over the last few years and improving rental market, some property owners are now choosing to rent their properties instead of selling.
“This quarter we have seen a 15 per cent decrease in listings for sale and a 10 per cent increase in listings for rent, which demonstrates that some owners are choosing to hold and rent their properties, rather than selling. Aside from the increase in house and unit median weekly rent, it takes only 41 days on average to lease out a property whereas it takes around 79 days to sell.
“The increase in the rental market activity could be the start of recovery, a factor we are keen to keep an eye on for the second half of the year,” Mr Collins said.
Median rent prices
Both Perth’s house and unit median rent price have risen $10 per week to $360 and $330, since June 2018.
reiwa.com data shows the top performing suburbs for rent price growth in the June quarter were in the upper mid-range of the market.
“Bull Creek ($425 per week), Stirling ($450 per week), Yangebup ($380 per week), Mount Lawley ($485 per week) and Applecross ($520 per week) were the five best performing suburbs for the quarter.
“An important aspect to note is that these top suburbs have a median rent price higher than the average per week, which showcases that there are some areas in the mid to upper segment of the Perth rental market in favour of landlords” Mr Collins said.
There were 7,448 properties for rent in Perth at the end of the quarter which is 10 per cent more than the March quarter, however 15 per cent less than June 2018, demonstrating a significant annual decrease.
“Despite stock levels increasing, provided landlords listen to the advice of their property manager and price their rental in line with market expectations, they have a very good chance of securing a tenant,” Mr Collins said.
Average leasing time and leasing activity
It took 41 days on average to find a tenant this quarter, which is one day faster than the March 2019 quarter.
“It is also six days faster to lease a property than it was during last year’s June quarter, which is a notable improvement,
There were 11,954 properties leased during the June 2019 quarter compared to 13,959 properties leased the previous quarter.
“Although leasing activity softened during the June quarter, activity levels remain above long term averages. With key indicators of Perth’s rental market improving or stabilising this quarter, we can expect these positive trends to continue.” Mr Collins said.