Perth Rental Market
The Perth vacancy rate is one of the most rapidly tightening rental markets across Australia with vacancy rates falling since 2018, which is a major sign of Perth’s recovery.
With low vacancy rates, this is expected to increase pressure on rental demands thus positioning property investors to enjoy better returns.
REIWA data shows there has been a $10 increase in average rent price compared to June 2018. It’s positive to see the average rent price slowly rising from an annual perspective. In June alone, Yangebup, Karrinyup and Nedlands showed the highest increase to their average rent price of approximately $20 per week. According to REIWA, 29% of suburbs in Perth had an increase in rents during the March quarter, and 36% of suburbs increased over the past year.
In June the suburbs saw that saw the biggest rental activity were Perth, South Perth, Baldivis and Scarborough.
The rental market sphere has been increasingly active over the last quarter, favouring investors and shortening the Perth vacancy rate to 2.5%. The median rental price has remained stable at $350 per week for a ninth consecutive quarter. If the rental market continues in this direction we should inevitably see an increase in Perth’s median rent over the coming months.
Sales & Rental Trends
REIWA data shows that Perth house sales were down in June, but 31 suburbs across the metro area bucked the trend and went on to record more sales in June compared to May.
Duncraig, Mosman Park, Waikiki, Dayton and Palmyra were the five best performing suburbs, all of which recorded significant improvements in the number of houses sold between May and June. Other suburbs to perform well were Butler, Kelmscott, Tapping, Baldivis and Joondalup.
According to REIWA data, eight out of the 10 suburbs had median house prices below $550,000 which were typical areas for first home buyer activity. Prices below this price bracket are seeing healthy activity with first home buyers taking advantage of the conditions before prices start to rise again.
Perth’s Top Rental Suburbs
Looking at a snapshot of Perth’s rental market, the top rental suburbs are Perth, South Perth, Baldivis and Scarborough. The following suburbs currently have the most available rental properties; Perth, East Perth, South Perth and Scarborough.
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