For the first quarter of the 2020, Perth’s median weekly rent is up 1.4% to $375 for houses and up 3.2% to $320 for units compared to the previous quarter, according to Domain. In comparison to 2019, this is a 2.7% and 6.7% increase for house and unit rental prices respectively. Head of Research Australia, Eliza Owen, states that the figures we are seeing should be taken with a grain of salt however, commenting ‘It is worth noting that rent data for the March quarter would capture little of the impact from COVID-19, where the regulations of social distancing that have been most disruptive to the economy commenced on March 23rd.”
By looking at residential property prices across the nation over the past few months, we can already see the steady decline in value from the late March period.
Despite this, Perth itself is holding up strongly compared to other cities across Australia. According to CoreLogic’s latest research, our city’s house values haven’t declined for the fifth month in a row. This coupled with slight improvements to weekly rental prices, which have risen 2% in the last 12 months, should be a welcome piece of good news to local landlords who are still dealing with the effects of COVID-19 and tenancy payment issues.
Perth Rental Market
In the middle of the month, REIWA released their list of Perth’s most affordable suburbs to rent, alongside their average days to lease. As the chart shows, we see some regular suburbs, including Orelia, Armadale, Calista, Camillo and Kelmscott, which all were rented out in under 50 days on average. This is a jump from the figures we reported on in our February Perth Market Update, which had Armadale’s median days to lease sitting at just 27, compared to 44 now.
With the increasing leasing time, it emphasises just how important it is to have a property management agency like Benchmark who has a track record of having some of the lowest vacancy rates in the area.
REIWA’s rental market snapshot for the week ending 26 April shows East Perth as the top suburb for both leased properties and available rentals. Scarborough, Baldivis and Joondalup also followed as the suburb leaders for the most leased properties. If we look at the properties leased last week across Perth compared to the same time in 2019, we can see a 48% increase overall.
Perth Sales Market
From a house sales perspective, Perth saw a strong increase compared to both the previous month and previous year, with 437 house, unit and land sales in total. The number of properties listed for sale decreased however, down nearly 30% from the same time last year. Balga, Baldivis and Palmyra were recognised as Perth’s top selling suburbs for the past week.
If you are looking for the right property management agency during this time of uncertainty, we’re here for you. Check out our COVID-19 response which outlines our exact strategies for ensuring our landlords and tenants are well looked after. Find out more here.
Featured image credited to Curtin University.